• 4 minutes Why Trump Is Right to Re-Open the Economy
  • 7 minutes Did Trump start the oil price war?
  • 11 minutes Covid-19 logarithmic growth
  • 15 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 18 minutes China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 9 mins How to Create a Pandemic
  • 2 hours KSA taking Missiles from ?
  • 3 mins There are 4 major mfg of hydroxychloroquine in the world. China, Germany, India and Israel. Germany and India are hoarding production and blocked exports to the United States. China not shipping any , don't know their policy.
  • 1 min A New Solar-Panel Plant Could Have Capacity to Meet Half of Global Demand
  • 6 hours Trump eyes massive expulsion of suspected Chinese spies
  • 5 hours Today 127 new cases in US, 99 in China, 778 in Italy
  • 8 hours TRUMP pushing Hydroxychloroquine + Zpak therapy forward despite FDA conservative approach. As he reasons, "What have we got to lose ?"
  • 11 hours Where's the storage?
  • 7 hours America’s Corona Tsar, Andrew Fauci, Concedes Covid-19 May Be Just a Bad Flu With a Fatality Rate of 0.1%
  • 8 hours Western Canadian Select selling for $6.48 bbl. Enbridge charges between $7 to $9 bbl to ship to the GOM refineries.
  • 13 hours Oxford Epidemiologist: Here’s Why That Covid-19 Doomsday Model Is Likely Way Off
Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Exxon Mobil and the Oil Markets

The price action by Exxon Mobil (XOM) puts this stock on the radar this week. This market is significant because it is a major component of the S&P 500 Index as well as a strong indicator of future price action in crude oil.

When comparing the Exxon chart to the S&P 500 chart, one will notice the divergence between the two. Since reaching a top at $95.49 the week-ending July 26, Exxon has sold off sharply, reflecting the strong correlation to the price of crude oil.

Even with the broad-based S&P 500 market trading at an all-time high, Exxon has not been able to muster the slightest rally. This is because the market is too closely tied to the fundamentals of oil. Investors have decided that the stock is overvalued based on oil prices and this is the force putting the pressure on its price.

Since reaching a low at $86.39 the week-ending August 22, Exxon stock has stabilized, suggesting profit-taking or aggressive counter-trend buyers are propping it up for a possible retracement to the upside. A similar pattern can be seen on the weekly October crude oil chart. Prices have stabilized inside a major weekly retracement zone with the market reaching a low at $92.50 the week-ending August 22.

At this point in price and time on the charts, crude oil and Exxon on poised to play follow the leader. Since crude oil topped almost a month before Exxon topped, the chart pattern is suggesting that a rally in this market will spark a similar…




Oilprice - The No. 1 Source for Oil & Energy News