What Do ExxonMobil’s Latest Moving Averages Suggest?



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.

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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.


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