Shares of ExxonMobil Corp., an American oil company, are moving within a long-term upward channel, but last month the price reached its upper limit, failed to overcome it, and began to correct. Prices are under pressure from monetary factors: the last meeting of the US Federal Reserve this year disappointed investors who were counting on a further slowdown in monetary policy tightening or a break in the rate hike cycle, but officials confirmed that they would stick to the "hawkish" rhetoric soon, maintaining the indicator at high levels until at least 2024, which increases the possibility of a recession in the economy, forcing traders to abandon risky assets.
The long-term outlook for the corporation remains positive, so that the current price correction may end soon: despite the global economic crisis, experts believe that the Chinese economy will begin to recover from the coronavirus pandemic, which will lead to an increase in oil demand next year. Also, there will be a shortage of liquefied gas in the EU countries, which ExxonMobil Corp. will also be able to fill. The company's stability in the eyes of investors is given by the management's intention to invest 25.0B dollars in its development, as well as plans to pay off debts, reduce operating costs and buy back shares in the amount of 50.0B dollars.
The trading instrument is around 105.15, but to develop a decline, it will need to break below 100.00 (Murrey level [4/8]), and then the quotes will be able to fall to 93.75 (Murrey level [3/8]) and 87.50 (Murrey level [ 2/8]). The key "bullish" level is the middle line of Bollinger bands 108.15, the breakout of which will give the perspective of the return of the asset to 112.50 (Murrey level [6/8]), 118.75 (Murrey level [7/8], the upper limit of the ascending channel).
Technical indicators allow the development of a downward correction: Bollinger bands and Stochastic are directed downwards, and the MACD histogram is stable in the negative zone.
Resistance levels: 108.15, 112.50, 118.75. | Support levels: 100.00, 93.75, 87.50.