Exxon (XOM) ... Be on Alert Grasshopper Last Friday Exxon (XOM) achieved an all-time high.
This was on the back of their latest full year earnings, which handily beat analysts estimates.
If recession fears continue to dominate and actually result in a economic downturn, XOM may become an institutional sell candidate
Consider:
1) shares are at the top of an ascending channel in place since June 2020.
2) XOM's price has nearly tripled in the same period.
3) 2 Bearish Harmonic patterns are currently in place. ( marked on the chart)
4) XLE peaked in June 2022 and is on its 3rd attempt to challenge this level
5) If there is an broad based economic slowdown this may be an early victim.
Note: Q1 earnings are expected in late April.. a quarter which is usually softer.
XOM announced up to $35B in shared buybacks.
Bottom Line: Don't short XOM here but be vigilant for a price reversal particularly in a softer broad markets,
In a world were Petro and dollar flows are unstable, share price going forward could be quite volatile especially since it is fully priced IMHO.
If there is a well defined break, I have marked potential target levels.
As usual ... DYODD
Good Luck
I will update as needed.
S.
