Have You Seen the Latest Move in XOM

Nov 10, 2010: 8:32 PM CST

I admit that the most recent move higher in Exxon-Mobil (XOM) – a leading bellweather stock to watch – has been impressive, taking price up into weekly resistance.

Let’s move our way up from the daily chart to view the weekly level and find out what might be the next potential move for XOM.

I’ve written previously about the daily chart Triangle Pattern breakout at the $60 level, and this week hit the upside price pattern projection target as drawn.

The general rule is to take the height of a triangle formation and then add that price distance to the breakout from the triangle pattern – in this case at $60.

There’s different ways to draw the height, but this particular method is about a $10 move that – when added to the $60 level – took price where we are now at $71.

If the pattern is complete, we could see a pullback develop.  This corresponds with a price movement up into weekly potential resistance.

The 200 week SMA currently resides at the $72.00 per share level, which also was a prior price high level as seen from 2009 forward (minus the little blip up in November ’09).

It’s possible – not guaranteed of course – that we could see a pullback soon – or at least a little pause.

And if buyers are more powerful to overcome the potential chart sellers at the $72 level, then Exxon-Mobil’s next upside breakout targets immediately become $75 (the November 2009 high) and above $75 is the $80 level (late 2008 level).

When a major stock like Exxon-Mobile moves this much – from $55 to $71 in about 5 months, it’s often time to take notice and watch closely for further upside moves – if the $71 breaks.

Corey Rosenbloom, CMT
Afraid to Trade.com

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