ExxonMobil (XOM): Risk Breaking Below March's Low
George Lam September 30, 2020 12:52 PM
Pressure has been mounting on ExxonMobil's share price, as its technical outlook points to a potential new down leg...
Pressure has been mounting on ExxonMobil's share price, after the U.S. oil giant posted historical quarterly losses in late July. Furthermore, the company warned that low energy prices could wipe 20% of oil and natural gas reserves off its books. To make thing worse, ExxonMobil was kicked out the Dow Jones Industrial Average in late August.
Meanwhile, the relationship between ExxonMobil's management and its shareholders appears to be uncertain, as major shareholder BlackRock said previously it voted against the company's board of directors for failing to make progress on tackling the climate crisis and "effective corporate governance is lacking".
On a daily chart, ExxonMobil (XOM) is capped by a long-term bearish trend line drawn from January. In fact, it has formed a head and shoulders pattern, with the neckline broken. The level at $40.50 might be considered as the nearest resistance, while the 1st and 2nd support are expected to be located at $30.11 and $23.20 respectively. Alternatively, a break above $40.50 would suggest that the next resistance at $46.40 may be challenged.
From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.