XOM gains $0.21 (0.5%) after posting weak earnings
Exxon Mobil Corporation (XOM) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
XOM ended the month -5.9% lower at 42.08 after gaining $0.21 (0.5%) today on high volume, slightly outperforming the Dow Indu. (0.44%) following today's earnings report. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (XOM as at Jul 31, 2020):
XOM reported earnings of $-0.7 per share before today's market open. With analysts having expected an EPS of $-0.63, Exxon Mobil Corporation failed market expectations by -11.1%. The company's last earnings report was released on May 1, 2020, when Exxon Mobil Corporation reported earnings of $0.53 per share topping market expectations by 1,225.0%.
Friday's trading range has been $1.26 (3.06%), that's slightly above the last trading month's daily average range of $1.20. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for XOM.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Thrusting Pattern. The last time a Thrusting Pattern showed up on June 25th, XOM lost -3.43% on the following trading day.
Prices are trading close to the key technical resistance level at 42.22 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Trading close to May's low at 40.20 we could see further downside momentum if potential sell stops at the level get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Stock Earning Report based market condition "Trading Day post weak Earnings Report" stand out. Though it is usually interpreted as neutral, it has actually shown to be bearish for Exxon Mobil. Out of 9 times, XOM closed lower 88.89% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 88.89% with an average market move of -2.69%.