uploads/2018/03/DMA-6.jpg

What Do ExxonMobil’s Latest Moving Averages Suggest?

By

Updated

ExxonMobil’s moving averages in the past four quarters

At the beginning of 1Q17, ExxonMobil (XOM) stock fell. ExxonMobil’s 50-day moving average, which stood below its 200-day moving average, slid further down.

ExxonMobil’s downtrend halted in 2Q17 on XOM’s better-than-expected 1Q17 earnings. As WTI (West Texas Intermediate) plunged, however, XOM stock remained under pressure. In 3Q17, ExxonMobil’s 50-day moving average remained below its 200-day moving average.

However, in 4Q17, as WTI started rising, XOM stock began surging. Led by the upswing, XOM’s 50-day moving average rose steeply, ultimately crossing over its 200-day moving average. The crossover happened after almost a year, denoting a positive breakthrough for the stock.

Article continues below advertisement

ExxonMobil’s moving averages so far in 1Q18

So far in 1Q18, XOM’s 50-day moving average has plunged. The fall in XOM’s 50-day moving average was due to a steep fall in its stock, which we discussed in Part One of this series. XOM’s 50-day moving average broke below its 200-day moving average. Its 50-day moving average, which stood 1.9% above its 200-day moving average at the beginning of the quarter, now stands 1.8% below it. Whenever a short-term moving average breaks below a longer-term moving average, it denotes technical bearishness.

Peers’ moving averages

ExxonMobil’s peers’ 50-day moving averages are trading above their 200-day moving averages. Total’s (TOT), Statoil’s (STO), and Petrobras’s (PBR) 50-day moving averages stand 6%, 14%, and 28%, respectively, above their 200-day moving averages. YPF’s (YPF) 50-day moving average stands 4% above its 200-day moving average.

Also, the SPDR Dow Jones Industrial Average ETF’s (DIA) and the SPDR S&P 500 ETF’s (SPY) 50-day moving averages stand 8% and 6% above their 200-day moving averages, respectively.

If you want to know more about ExxonMobil’s stock price estimate leading up to June 29, 2018, move on to the next article.

Advertisement

More From Market Realist