uploads/2017/12/XOM-2.jpg

ExxonMobil Stock in 4Q17: 50 DMA Crosses over 200 DMA

By

Updated

ExxonMobil’s stock performance in 4Q17

ExxonMobil (XOM) stock stands seventh in the list of the top ten integrated energy stocks in our survey. XOM is also the last stock of the middle order.

ExxonMobil stock has risen 1.4% since October 2, 2017, underperforming the SPDR Dow Jones Industrial Average ETF Trust (DIA). DIA has risen 9.0% in the same period.

Article continues below advertisement

ExxonMobil’s moving averages

At the beginning of 4Q17, ExxonMobil’s 50-day moving average (or 50 DMA) stood below its 200-day moving average (or 200 DMA). However, the rise in ExxonMobil stock has led to an increase in its 50 DMA, resulting in its 50 DMA crossing over 200 DMA—a technically bullish sign.

XOM’s 50 DMA stood 3.7% below its 200 DMA on October 2, 2017, and it currently stands 1.6% above its 200 DMA. This trend put the stock in a technically bullish zone.

Why the rise in ExxonMobil stock?

ExxonMobil (XOM) stock’s correlation coefficient versus WTI for the last one-year period stood at 0.41, implying a positive correlation. WTI prices rose 13.0% in 4Q17, which could have affected XOM stock favorably.

During the quarter, ExxonMobil posted its 3Q17 and 9M17 results. XOM’s 3Q17 earnings exceeded estimates. For more on these earnings, please read ExxonMobil’s 3Q17 Earnings Beat Estimates: Stock Rises.

During the quarter, ExxonMobil (XOM) acquired exploration acreage in three deepwater offshore blocks in Mauritania. XOM also announced the startup of Hebron Field, which is expected to yield 150,000 barrels of oil per day of peak production. XOM is the operator for the field and holds 35.5% stake in it via its affiliate.

Suncor Energy (SU), Chevron (CVX), and Statoil (STO) also hold stakes of 21.0%, 29.6%, and 9.0%, respectively, in this field via affiliates or subsidiaries. During the quarter, XOM completed an acquisition of a 25% indirect stake in Mozambique’s Area 4, a gas-rich region, from ENI (E).

In the next part, we’ll review Suncor Energy’s stock returns in 4Q17.

Advertisement

More From Market Realist