What ExxonMobil’s Moving Averages Suggest

ExxonMobil’s moving averages in 2017

In 1Q17, ExxonMobil (XOM) stock fell. ExxonMobil’s 50-day moving average, which was below its 200-day moving average, slid further down. ExxonMobil’s downtrend halted in the second quarter with its better-than-expected 1Q17 earnings. However, as WTI (West Texas Intermediate) plunged, XOM stock remained pressured. In 3Q17, ExxonMobil’s 50-day moving average stayed below its 200-day moving average, and then in 4Q17, as WTI started rising, XOM stock rose—we discussed this in the previous part. Led by the stock upsurge, XOM’s 50-day moving average rose steeply, ultimately crossing over its 200-day moving average in 4Q17.

What ExxonMobil’s Moving Averages Suggest

Currently, XOM’s 50-day moving average is 2.5% above its 200-day moving average. Any favorable news on oil prices could cause ExxonMobil’s stock to rise and boost its 50-day moving average further. Also, if XOM delivers better-than-expected 4Q17 earnings, its stock price could rise. ExxonMobil is expected to post its 4Q17 earnings results on February 2, 2018.

Peers’ moving averages

Like ExxonMobil’s moving averages, PetroChina’s (PTR), YPF’s (YPF), ENI’s (E), and Suncor Energy’s (SU) 50-day moving averages are above their 200-day moving averages, by 5.4%, 1.4%, 4.2%, and 9.1%, respectively.

In the broader market, the SPDR Dow Jones Industrial Average ETF’s (DIA) and SPDR S&P 500 ETF’s (SPY) 50-day moving averages are 9.1% and 6.2% above their 200-day moving averages, respectively. These ETFs’ moving averages closely mirror the environment of the overall economy, which includes several industries. In the next part, we’ll look at ExxonMobil’s expected stock price range.