The share price gains for energy giant Exxon Mobil (XOM) has saved some portfolios this year. More gains lay ahead for XOM if the charts and technical indicators are correct. Let's check.
In this daily bar chart of XOM, below, we can see that prices bottomed in August/September and turned higher. XOM is trading above the rising 50-day moving average line and above the rising 200-day line.
The On-Balance-Volume (OBV) line has risen smartly to confirm the price gains. Buyers of XOM are more aggressive than sellers. The Moving Average Convergence Divergence (MACD) oscillator has been above the zero line all year and is pointed higher.
In this weekly Japanese candlestick chart of XOM, below, we can see a double bottom pattern in the $35-$30 area. Prices are trading above the rising 40-week moving average line. The weekly OBV line is strong and confirms the price gains. The MACD oscillator has narrowed but is still pointed higher.
In this daily Point and Figure chart of XOM, below, we can see an upside price target in the $110 area.
In this weekly Point and Figure chart of XOM, below, we can see a potential upside price target in the $128 area.
In this second weekly Point and Figure chart of XOM, below, we used a five box reversal filter. Here the software raises the price target of XOM to $175. Impressive.
What could drive XOM's share price so high? Let's check the price chart of crude oil.
In this weekly Point and Figure chart of West Texas Intermediate, below, we can see a price target in the $166 area. Point and Figure charts do not have a time element so we won't forecast one but obviously this will be painful at the gas pump should it happen.
Bottom line strategy: Taders could go long XOM at current levels or add to existing longs at current levels. Risk to $79 for now. $110 and then $128 are our nearest price targets.
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