Exxon Mobil Corporation (NYSE:XOM) is bullish. Exxon is a beneficiary of the war crisis in Ukraine as a result of which prices of oil and gas have risen. Oil prices are back to levels recorded more than a decade ago, pointing to the opportunity for oil companies to regain revenue growth.
For Exxon, however, valuation also captures the announcement of increased investments in Australian gas developments.
The share hit a high of $91.51 last week. This week it closes lower at a market valuation of $78. A deeper analysis of the pricing shows that Exxon is at a critical point where the MA 50 finally rises above MA 200 at an average price of $63.
The convergence signals the expectation of a short-term rally in valuation. It is one of the reasons why Exxon remained among the most active stocks in the market.
Exxon expects a pullback to a $65-$70 price range
Source – TradingView
Having observed the pattern in pricing, the question is whether investors should consider investing at the current prices. MACD is double bullish.
However, the RSI indicates it is pulling towards the overbought indicator. Interpreted together with the week’s pullback in price, the analysis shows that the price could be expected to decline to levels between $65 and $70.
This is where the share will gather bullish momentum which will be sustained until Exxon announces the earnings for the current quarter. Based on these projections, we suggest that investors wait for the pullback before investing in the stock.
Exxon is at a strong point both technically and fundamentally. The increases in oil prices, supply shocks from sanctions against Russia, and the Australian investments are indicators of strength. Investors should, however, wait to invest at a better price of between $65 and $70.
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