Title: Unlocking the Potential of Exxon Mobil: Is a Breakout Imminent?
Exxon Mobil (XOM) has been making headlines in recent weeks as the stock shows signs of a potential breakout. Despite the challenges faced by many energy companies since April, Exxon Mobil’s market cap of $510 billion makes it the 16th biggest company in the S&P 500 index. It is also the only energy name within the index’s top 25 holdings, highlighting its significance in the market.
While XOM is currently within 7% of its 52-week high of $123.75, the real excitement lies in the technical analysis of the stock’s chart. The daily chart may not be overly appealing at the moment, but a closer look at the weekly chart reveals a large potential bullish inverse head-and-shoulders formation. This pattern suggests a breakout through the neckline near $123-$124 could propel the stock towards a $150 price target.
Zooming out to a quarterly chart spanning 50 years, we see that XOM has broken out from multi-year bullish patterns five times before. The last breakout in 2004 led to strong price action, and a breakout to new highs now would help extend the 14-year bullish pattern breakout from 2008 to 2022.
Of course, Exxon Mobil’s performance is closely tied to the future path of crude oil prices. However, the stock has been forming a bullish chart pattern relative to crude oil since late 2022, indicating a possible decoupling from the commodity. The upcoming earnings report on August 2 will be a key catalyst for XOM’s future trajectory.
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