While viewing my energy portfolio this morning, I stopped and looked at the chart for Exxon Mobile (NYSE:XOM). I immediately noticed major resistance coming in at the $95 level. Can Exxon break through this major resistance level and take off to the upside?
If I measure from the resistance at $95 all the way down to the low in July of 2010, the difference is around $35. If I then add $35 to the breakout point, it takes us to my target zone of $130 per share for Exxon. Now remember, the market must move over the $95 level for this to happen.
Let's take a look at what we can see on the chart.
(1) Major resistance at $95
(2) A major base that extends from October 2007 to October 2013
(3) A defined difference of $35 from the base (2) to resistance (1).
(4) Taking the difference of $35 and adding that to $95 to provide a target zone for Exxon Mobile of $130 a share.
(5) Target zone on $130 if resistance (1) is broken.
Keep in mind, there are always things that can go wrong with any trade. It is very important to have an exit plan and a stop loss strategy to protect your capital.
Our Trade Triangles are all positive on this stock and the monthly Trade Triangle kicked in on November 5th at $93.10. It is also worth noting that the price of crude oil has dropped 10% since September, which may or may not help this energy stock.
What do you think of this chart setup on Exxon Mobil? Do you agree or disagree with my chart analysis? I would like to hear your feedback on Exxon or any other stock that you are watching.
Every success in your financial future.