XOM pushes through key technical resistance level
Exxon Mobil Corporation (XOM) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
XOM ended Wednesday at 37.81 surging $1.54 (4.25%), notably outperforming the Dow Indu. (0.13%). This is the biggest single-day gain in over a month. The last time we've seen such an unusually strong single-day gain on July 21st, XOM actually lost -2.33% on the following trading day. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 37.38, the market confirmed its breakout through the previous session high after trading up to $0.77 above it intraday.
Daily Candlestick Chart (XOM as at Sep 16, 2020):
Wednesday's trading range has been $1.88 (5.16%), that's far above the last trading month's daily average range of $1.02. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for XOM.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 37.35 (now S1), which is likely to act as support going forward. After having been unable to move lower than 36.21 in the prior session, the stock found buyers again around the same price level today at 36.27.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 38.84 where further buy stops might get activated.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Up Move" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Exxon Mobil. Out of 331 times, XOM closed lower 56.80% 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 50.45% with an average market move of -0.46%.