XOM - Re-Testing the L-MLHXOM is super strong.
I use my favorite tool, the pitchfork, to apply projections of price, filtering, find entries, exits etc.
What many pitchfork traders don't understand is, that they can't just apply this tool to the chart. I see many doing it wrong anyways, which has to do with identifying the correct pivot/swing/pendulum swing points, and not being aware of the rules.
However, using the rules is equally important. Because the rules define the framing around this tool. Otherwise it's worth nothing, or even harmful to the trader.
One of the rules says, that if price is trading outside the pitchfork, it often is going to test/re-test the line where it fell/zoomed out of.
In this case it's the L-MLH, the Lower-Medianline-Parallel. As we see, the first test was just a couple days ago. Now, it looks like XOM is re-testing the L-MLH again.
What happens after the re-test?
a) price is either strong enough to trade back into the projected pitchfork again, recapturing the previous slope/path of price.
or
b) price will trade to the next WL (Warning Line), going south or eating up time by trading sideways.
As a firm believer in the rules of the pitchfork, I'm long this stock, playing for a re-test at the L-MLH.
