Exxon Stock Running Out of Gas

Market Update: I am sure that you all have seen that the market has fallen well off its highs due to uncertainty and potential fallout from the Coronavirus epidemic.

Over the past few weeks, the indexes have fallen sharply and are now trading about 30% below their previous highs.

This means we are officially in a bear market. Fortunately, this is not all bad news.

As traders, with the right strategies, we can make a profit in any market. My PowerTrend system applies just as well in bearish markets.

I shift my focus from bullish call options and call option spreads to bearish put options and put option spreads, but the underlying system remains the same.

Now, let’s beat the bear market and start making money!

Yesterday, we looked at a 10-Month SMA chart of American Airlines Group Inc. and noted that it was showing a ‘Sell’ signal after its monthly price is trading below the 10-Month SMA.

Today’s Chart of the Day is a Daily Price Chart for Exxon Mobil Corp. (NYSE: XOM).

Exxon Mobil Corporation explores for and produces crude oil and natural gas in the United States, Canada/other Americas, Europe, Africa, Asia, and Australia/Oceania. It operates through Upstream, Downstream, and Chemical segments. The company is also involved in the manufacture, trade, transport, and sale of crude oil, petroleum products, and other specialty products; and manufactures and markets petrochemicals, including olefins, polyolefins, aromatics, and various other petrochemicals.

Now, the Daily Price Chart below shows that XOM has been making a series of 52-Week Lows since early January.

exxon oil chart

A stock hitting new 52-Week Lows is in a very powerful downtrend.

And as we know, stocks in a price downtrend do not advance in a straight line.

There are always price retracements along the way.

XOM experienced periodic price rebounds during its strong decline since January.

Traders can get a lower risk entry point for bearish put purchase trades after a 3 to 5% price rebound as the stock normally resumes its price downtrend after such retracements.

We’ll be sure to continue following Exxon Mobil Corp. as it drops to new lows, and watching for price rebounds.

Best Regards,

Chuck Hughes
Editor, Chart Of The Day

Chuck Hughes

Written By Chuck Hughes

Before Chuck Hughes won 10 Trading Championships, he was an accomplished Air Force pilot. In fact, he credits his success as a stock and options trader to his disciplined upbringing and career. When he was deciding between a career in the Navy and a career in the Air Force, the Navy told him he’d only have a 33% chance of flying jets. The Air Force gave him 100%. He liked those odds better. 35 years ago, Chuck had a wife, a young daughter, a son on the way, and a huge mortgage to afford. He didn’t want to give up on his lifelong dream and stop flying for a major commercial airline. He knew he needed to supplement his income during the 15 days a month he wasn’t flying. So he used his experience in discipline and math, and his understanding of finance and the stock markets (which he’d always been interested in,) and opened a $4,600 trading account. He made over $460,000 in profits his first two years of trading, and he hasn’t looked back since. When he was diagnosed with Meniere’s disease 15 years later, which commonly leads to vertigo…He knew his career as a pilot wouldn’t last much longer with those odds. But he didn’t have to scurry to find another gig, or panic about how his family would eat… He’d spent the last 15 years perfecting his system and raking in cash. As an options trader, Chuck does not let his emotions get in the way of his trading strategy. He adheres to disciplined and methodical options and stock trades. Because he respects the options game so highly, and understands the true freedom that financial solvency can bring, Chuck was able to design and refine his system and win those 10 Trading Championships. Put simply, Chuck Hughes’ trading strategies work, and in all types of market conditions. They’ve worked throughout the bull, bear, and flat markets America has seen in the last 30 years. Chuck Hughes has spent that time building a reputation as one of the most trustworthy options traders in the industry. His publishing group Legacy Publishing LLC was one of the few trading groups on the planet to have correctly predicted and profited from the 2008 financial crash .As a published author 16 times over, a 10-time Trading Championship winner, and an options-trading teacher for 25 years, he’s learned to trade and teach without an ego.