This Former Market Leader Is Lacking Upside Energy

Yesterday, we analyzed TWOU and determined it could be ready to start moving higher again.

For today’s chart, let’s take a look at Exxon Mobil Corp. (XOM).

XOM is a multinational oil and gas company headquartered in Texas.

Yesterday was a historic day for XOM. It marked the first time since 1928 that the company has not been part of the Dow Jones Industrial Average (in one form or another). XOM’s streak was the longest in the history of that index.

Currently, Exxon is not looking healthy from a bullish point of view, and could be headed for lower prices.

Let’s take a look at the daily price chart below:

Chart

XOM bounced off its 15-year lows back in March, but couldn’t keep the momentum going on the upside. The stall out and subsequent grind lower suggests further downside is probable for this one.

We’ll be looking for a sell signal on XOM, and likely soon.

Now, I know shorting stocks can be intimidating, especially in a raging bull market. But here’s the thing: Even in strong markets, some stocks are still set up to move lower.

Buying put options is an alternative to short selling shares outright. With put options, your risk is defined, and you can position yourself to capitalize on downside moves.

You can find out all about buying options in Chuck Hughes’s Thunderbirds Options video course. Click here for the details.

See ya tomorrow!

Trade Smart,

Michael Saul
Analyst, 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.