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ExxonMobil Corp. Price Increases may Continue

11/8/2022 3:04 PM

Shares of ExxonMobil Corp., an American oil company, have been growing strongly for the second month in a row.

The corporation's strong financial statements and overall favorable energy market conditions support the positive dynamics. Third-quarter revenue was 18.7B dollars, up 6.0% QoQ and 177.0% YoY, with earnings per share of 4.45 dollars, above average expert forecasts. Experts have reason to believe that ExxonMobil Corp. in the fourth quarter will continue to grow, as energy demand will increase in the winter months, and oil prices will remain high due to the planned reduction in production by OPEC+ countries and sanctions imposed by several countries on Russian energy supplies.

Several negative factors may put pressure on the quotes in the future, but so far, their negative impact is not significant. Thus, US President Joe Biden yesterday called on oil companies to reduce the fuel price for citizens or invest in increasing their domestic production, promising to introduce additional taxes on the excess profits of the oil business otherwise. Still, experts believe such a bill will be extremely difficult to pass in Congress, even if the Democratic Party retains a majority in both houses after the election.

Also, it became known about the sale soon belonging to ExxonMobil Corp. oil and gas fields in California that was never reopened after the 2015 crash, potentially costing the company about 2.0B dollars but divesting troubled assets could free up funds for more promising projects.

The trading instrument is trying to consolidate above 112.50 (Murrey [6/8]), leave the ascending channel, and continue rising to 118.75 (Murrey [7/8]) and 125.00 (Murrey [8/8]). The key "bearish" level is 106.25 (Murrey [5/8]), supported by the middle line of Bollinger bands, in case of a downward breakdown of which it will be possible to develop a decline to 100.00 (Murrey [4/8]) and 93.75 (Murrey [3/8]).

Technical indicators point to the continuation of the upward trend: Bollinger Bands and Stochastic are reversing upwards, and MACD is growing in the positive zone.

Resistance levels: 112.50, 118.75, 125.00. | Support levels: 106.25, 100.00, 93.75.

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