Exxon Mobil (XOM)
The spread between technological and energy sector had reached the overvalued territory - the upper border of the Bollinger Bands indicator (parameter of 20 daily candlesticks). Usually, that’s a potential signal for starting a rotation between techs and energy stocks.
This spread may go down due to either a bearish pullback for techs or a bullish pullback for energies. The latter seems as a more realistic model given the improving market sentiment.
Spread between XLK (tech stocks ETF) and XLE (energy stocks ETF). Source: Tradingview.com
Exxon mobil stock (XOM) is consolidating within a massive chart formation, close to it’s bottom, and may bounce back, returning to the trading range, as displayed on the chart.
The declining energy markets, particularly Crude oil, pressure energy stock prices down, but usually the improving market sentiment can lift energy stock prices too.
