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Are XOM’s, CVX’s, Shell’s, and BP’s Moving Averages Bullish?

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Integrated energy stocks’ in the second quarter

In the second quarter, integrated energy stocks ExxonMobil (XOM), Chevron (CVX), Royal Dutch Shell (RDS.A), and BP (BP) put up mixed performances, perhaps due to lower oil prices, higher equity markets, and mixed first-quarter earnings results.

Moving average trends

The mixed performances of these integrated energy stocks affected their 50-day moving averages in the second quarter. While XOM’s and BP’s 50-day moving averages fell, Shell’s and Chevron’s 50-day moving averages rose in the quarter. Shell’s 50-day moving average crossed over its 200-day moving average, while ExxonMobil’s 50-day moving average broke below its 200-day moving average. Usually, when a short-term moving average crosses over a long-term moving average, it’s considered a technically bullish sign, and vice versa.

Shell’s 50-day moving average, which stood 2.5% below its 200-day moving average on April 1, 2019, the beginning of the quarter, stood 1.5% above its 200-day moving average on June 27, 2019, due to a 2.7% rise in the quarter. Chevron’s 50-day moving average rose 0.3% in the quarter and stood 1.4% above its 200-day moving average on June 27.

In comparison, ExxonMobil’s 50-day moving average fell 1.2% in the quarter, breaking below its 200-day moving average. ExxonMobil’s 50-day moving average stood 1.9% below its 200-day moving average at the end of the quarter. BP’s 50-day moving average fell 0.5% and stood equal to its 200-day moving average at the end of the quarter. BP stock is on the verge of breaking below its 200-day moving average.

Thus, moving averages suggest technical bullishness for Shell and Chevron.

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