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What ExxonMobil’s Moving Averages Tell Us Now

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ExxonMobil’s moving averages in 1H17

At the beginning of 2017, ExxonMobil (XOM) stock fell, and at the end of January, ExxonMobil announced its 4Q16 earnings, which beat estimates but showed impairment charges from 4Q16.

After that, the fall in oil prices pressurized the stock, and XOM’s 50-day moving average slid. XOM’s 50-day moving average had broken below its 200-day moving average in late 2016, due to key managerial changes. Remember, when a short-term moving average drops below a longer-term average, it’s seen as a bearish technical sign.

ExxonMobil’s downtrend halted in 2Q17 in anticipation of its 1Q17 earnings, which surpassed estimates. But as WTI (West Texas Intermediate) prices continued to plunge, XOM stock remained volatile.

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ExxonMobil’s moving averages in 3Q17 so far

In 3Q17, ExxonMobil’s 50-day moving average has stayed below its 200-day moving average. While XOM stock largely moved up and down with oil prices, lower-than-expected 2Q17 earnings negatively impacted its stock in 3Q17. Meanwhile, the impact of Hurricane Harvey on ExxonMobil’s major refineries has further pressured the stock.

XOM’s 50-day moving average now stands 4.2% below its 200-day moving average.

Peer moving averages

Chevron’s (CVX) 50-day moving average is trading 2.6% lower than its 200-day moving average, while BP’s (BP) 50-day moving average has breached its 200-day moving average and now stands 0.9% below the 200-day moving average. Royal Dutch Shell’s (RDS.A) 50-day moving average is trading 2.0% above its 200-day moving average.

The SPDR Dow Jones Industrial Average ETF’s (DIA) and the SPDR S&P 500 ETF’s (SPY) 50-day moving averages are now trading 4.6% and 3.8% above their 200-day moving averages, respectively.

If you want to know more about ExxonMobil’s ten-day stock price estimate, continue to the next part.

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