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ExxonMobil’s 50-Day Average Breaks below Its 200-Day Average

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Jun. 19 2019, Published 2:32 p.m. ET

ExxonMobil’s moving averages

ExxonMobil (XOM) stock has fallen 7.1% in the second quarter. Now let’s look at the company’s moving average trend in the current quarter. Before that, let’s take a quick look at how its moving averages have trended in the past couple of quarters.

In the fourth quarter of 2018, ExxonMobil’s 50-day moving average fell and broke below its 200-day moving average. The fall in ExxonMobil’s 50-day moving average was the result of a fall in the stock led by weaker equity markets and lower oil prices.

In contrast, in the first quarter, ExxonMobil stock and its 50-day moving average rose. Though XOM’s 50-day moving average stood below its 200-day moving average, the gap between both moving averages was marginal at the end of the first quarter.

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ExxonMobil’s moving averages in the second quarter

Continuing its momentum from the first quarter, ExxonMobil’s 50-day moving average rose and crossed over its 200-day moving average. The crossover happened at the beginning of the second quarter. However, as the quarter progressed, ExxonMobil stock fell, affecting its 50-day moving average. Eventually, XOM’s 50-day moving average broke below its 200-day moving average. ExxonMobil’s 50-day moving average, which stood 2.1% above its 200-day moving average on May 6, 2019, now stands 0.9% below its 200-day moving average.

However, in the past couple of weeks, ExxonMobil stock has been recovering. If the stock continues to rise, its 50-day moving average could soon cross over its 200-day moving average, which will be a positive breakthrough for its stock.

Peers’ moving averages

A few of ExxonMobil’s peers’ 50-day moving averages have already crossed over their 200-day moving averages. Chevron’s (CVX), BP’s (BP), and Royal Dutch Shell’s (RDS.A) 50-day moving averages stand 1.6%, 1.1%, and 1.4%, respectively, above their 200-day moving averages. However, Total’s (TOT), Eni’s (E), and Suncor Energy’s (SU) 50-day moving averages stand 4.0%, 3.5%, and 4.1%, respectively, below their 200-day moving averages.

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