Exxon Mobil Corporation XOM gapped up and rallied about 4.6% higher on Friday after printing its second-quarter financial results.
For the quarter, the energy giant reported earnings per share of $4.14, beating the consensus estimate of $3.74. Exxon reported revenues of $17.9 billion, an increase from $5.480 billion reported in the first quarter.
The positive reaction to Exxon’s earnings print helped to propel the stock back up toward its all-time high of $105.57, which was printed on Jan. 8, about 1.5 months before Russia invaded Ukraine.
Despite the war causing a global energy crisis, Exxon entered into a downtrend after reaching its new all-time high and lost 23% before bouncing up off the July 14 low of $80.69, to reverse course into a strong uptrend.
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The Exxon Chart: Exxon is trading in a strong and confirmed uptrend, with the most recent higher low printed on July 21 at $85.21 and the most recent confirmed higher high formed at the $89.65 level the day prior. Exxon has sourced about 13% higher without printing another higher low, which makes it likely the stock will pullback over the coming days.
- Exxon’s relative strength index also indicates a retracement is likely to take place because it’s currently measuring in at about 67%. When a stock’s RSI nears or reaches the 70% level it becomes overbought, which can be a sell signal for technical traders, although it should be noted that RSI levels can remain extended for long periods of time.
- Exxon has two gaps on its chart, with the closest gap between $98.67 and $99.79 and the lower gap between $93.25 and $94.10. Gaps on charts fill about 90% of the time, making it likely the stock will fill both empty trading ranges in the future.
- The upper gap may be the first to fill because on Friday Exxon closed near its high of day and printed a bullish kicker candlestick. If Exxon rises up to fill the gap, it may find resistance at the top of the range and print a reversal candlestick such as a shooting star or inverted hammer candlestick.
- If Exxon retraces to fill the lower gap due to its overbought conditions, a reversal to the upside may occur at the lower range of that gap.
- Exxon has resistance above at $99.66 and at the all-time high and support below at $96.62 and $92.53.
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