Current trend

Shares of ExxonMobil Corp., an American oil company, have been adding value for the second week in a row: yesterday, the price reached four-month highs around 119.89. The overall growth of the stock market has recently been provided by two main factors – the expectation of an interest rate adjustment, which will act as a driver of economic recovery, which, in turn, will lead to an increase in demand for fuel and petroleum products, as well as the likelihood of Donald Trump's re-election as president of the United States, after which a decrease in the corporate tax burden is likely, which will free up significant capital for investment.

Additional support for ExxonMobil Corp. securities is provided by an announcement of plans for the development of oil production in Guyana. The project called Hammerhead will require additional drilling of 30 new wells, production of which should begin in 2029, and productivity can range from 120.0 thousand to 180.0 thousand barrels of oil per day. Currently, ExxonMobil Corp. owns the majority of production facilities in Guyana and is actively suing Chevron Corp., trying to prevent it from buying a stake in Hess Corp., also leading oil production in the region. Experts predict that in the next decade, Guyana will produce 1.9 million barrels of oil equivalent per day, which is more than twice the output of Venezuela, an OPEC member, and comparable to production in the Gulf of Mexico.

Support and resistance

Currently, the asset is testing the 118.75 mark (Murrey level [8/8]), consolidation above which may lead to a return of the price to a long-term ascending channel and growth towards the targets of 121.88 (Murrey level [ 2/8]), 125.00 (Murrey level [8/8], H1), and 128.12 (Murrey level [ 2/8], H1). The key level for the bears is 114.06 (Murrey level [5/8]), supported by the central line of Bollinger Bands, with a breakdown of which downward dynamics will strengthen to 109.38 (Murrey level [2/8]) and 106.25 (Murrey level [0/8]).

Technical indicators confirm the formation of a new uptrend: Bollinger Bands are reversing up, MACD is moving into a positive zone, and the entry of Stochastic into the overbought zone does not exclude a corrective decline, but its potential is limited.

Resistance levels: 118.75, 121.88, 125.00, 128.12.

Support levels: 114.06, 109.38, 106.25.

Trading tips

Long positions can be opened above the 118.75 mark with targets of 121.88, 125.00, 128.12 and stop-loss around 116.00. Implementation period: 5–7 days.

Short positions should be opened below the level of 114.06 with targets of 109.38, 106.25 and stop-loss around 117.00.