XOM, CVX, Shell, BP: What Moving Averages Indicate


Aug. 14 2018, Updated 3:00 p.m. ET

Integrated energy stocks in the third quarter

In the third quarter so far, integrated energy stocks ExxonMobil (XOM), Chevron (CVX), Royal Dutch Shell (RDS.A), and BP (BP) have fallen. The fall was mainly due to lower oil prices, which we discussed earlier in the series.

The fall in stock price in integrated energy stocks could also have been due to these companies’ second-quarter earnings, which missed estimates. While XOM, CVX, and Shell missed Wall Street analysts’ earnings estimate, BP surpassed it. For more on this, you could refer, the post-earnings roundup of these stocks, Beats and Misses in Q2 2018: XOM, CVX, RDS.A, and BP.

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Moving averages trends in the third quarter

Integrated energy stocks, which are falling in the current quarter, rose in the second quarter. The rise in the previous quarter and the fall in current quarter diversely impacted these stocks’ 50-day moving average (or DMA) and 200 DMA. While the gap between XOM’s 50 DMA and 200 DMA widened, the gap between CVX, Shell, and BP’s 50 and 200 DMAs narrowed.

XOM’s 50 DMA crossed over its 200 DMA in the current quarter. Usually, 50 the DMA crossing over its 200 DMA is a technically bullish sign. XOM’s 50 DMA, which stood 0.3% below its 200 DMA on July 2, now stands 1.1% above its 200 DMA.

Also, Shell’s 50 DMA stands above 200 DMA. However, the gaps between Shell’s 50 DMA and 200 DMA has narrowed. Shell’s 50 DMA, which stood 6.2% above its 200 DMA on July 2 now stands 2.3% above its 200 DMA. Likewise, the gap between BP’s DMAs has narrowed from 9.6% on July 2 to the current level of 6.0%. Also, CVX’s 50 DMA, which stood 4.3% above its 200 DMA on July 2, now stands 2.5% above its 200 DMA. Nevertheless, the fact that these stocks’ 50 DMA continue to hold above their 200 DMA is a favorable sign.

Move on to the next part to look at price forecasts for XOM, CVX, RDS.A, and BP until the end of the third quarter.


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