Shares of Exxon Mobil Corporation (NYSE:XOM) continue to consolidate above its major exponential moving averages, after failing to breakout above the critical resistance at 88.59 on Thursday. This key level is proving to be a strong resistance zone since September. A strong trend would not be in place unless the
stock price closes above this strong resistance zone. The near-term outlook would depend on the price movement in the next week. A close above $88.59 would impart bullishness and would help the stock move higher. A drop below $85.93 would have negative implications that would push the stock down to the 85.20-85 range. From a technical standpoint, indicators are in bullish zones. The MACD is moving above its signal line in positive territory and the RSI is moving sideways above the 50 level. Slow stochastic is also rising above its 50 level. All five EMAs are rising and the stock is trading above them. For now, bulls are in control.
This is a guest post by António Costa, acclaimed trader and the popular author of AC Investor Blog. All views and analysis belong to the author.