Exxon is oversold (the most since 2020)

2024年12月17日

XOM is inside it's sideways channel since March 2024 and trades within a price range of $108 - $123 with one failed breakout to the upper side in October.

The recent pulldown came from commodity prices (oil) and political drama about how much oil will be offered in Trump's term. Of course, it would be best if supply will not outpace demand too much since this would let oil prices drop. Trump will learn this soon enough. Because of that it's mostly noise what we have seen in this chart.

The level at $108 offered strong support twice and the sector (XLE) is also offering support itself. Also, the last time we've seen this stock so oversold was during the Covid crash in 2020.

From a fundamental perspective, Exxon Mobil's recent performance highlights its strong investment potential. The company's total shareholder yield, combining dividends and buybacks, now exceeds 7%, offering substantial returns to investors. In Q3 2024, Exxon reported $8.6 billion in net profit, with a 25% production increase, partly due to the acquisition of Pioneer Natural Resources. Despite a 5% earnings decline from lower commodity prices, Exxon's diversified operations and strategic investments in alternative energy position it well for long-term growth. The recent stock price dip presents an attractive entry point for investors seeking robust returns in the energy sector.

Target Zones

• $114.00
  
• $123.00
  

Support Zones

• $108.00
  

2024年12月18日

交易進行

The intraday reversal is interesting. This could be a bear trap. Trade is not invalidated.