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XOM’s 50-Day Average Is above Its 200-Day Average Pre-Earnings

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ExxonMobil’s moving average trend in the third quarter

Before we discuss ExxonMobil’s (XOM) moving average in October, let’s look at its moving average trend in the third quarter.

In July, ExxonMobil’s 50-day moving average crossed over its 200-day moving average due to a rise in its stock in anticipation of its second-quarter earnings release. However, after the company missed its earnings estimate, the stock fell. The fall in oil prices also impacted ExxonMobil stock and its 50-day moving average.

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ExxonMobil’s moving average in October

So far in October, ExxonMobil’s 50-day moving average has risen 0.7% influenced by an increase in ExxonMobil stock from mid-August to September’s end. The rise in ExxonMobil’s 50-day moving average widened the difference between its 50-day moving average and its 200-day moving average. ExxonMobil’s 50-day moving average, which stood 1.2% above its 200-day moving average on October 1, now stands 1.9% above its 200-day moving average.

Though ExxonMobil’s 50-day moving average currently stands above its 200-day moving average, which is a favorable sign, the gap between both its moving averages is marginal, meaning that if the stock falls further, its 50-day moving average could fall and easily break below its 200-day moving average, which would indicate technical bearishness.

Going forward, if ExxonMobil puts up better-than-expected third-quarter earnings, its stock price could surge, which could support its 50-day moving average, helping it stay above its 200-day moving average. ExxonMobil is expected to post its third-quarter earnings results on November 2.

Peers’ moving averages

ExxonMobil’s peer BP’s (BP) 50-day moving average also currently stands 1.3% above its 200-day moving average. However, Chevron (CVX) and Royal Dutch Shell’s (RDS.A) 50-day moving averages stand 1.4% and 2.1% below their 200-day moving averages, respectively.

In the next article, we’ll look at an estimate of ExxonMobil’s stock price range leading up to its earnings release.

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