EXXONMOBIL CORP.: Q2 REVENUE BEATS ANALYSTS’ FORECASTS
| Scenario | |
|---|---|
| Timeframe | Weekly |
| Recommendation | SELL STOP |
| Entry Point | 113.45 |
| Take Profit | 108.00 |
| Stop Loss | 116.00 |
| Key Levels | 108.00, 113.50, 116.00, 120.40 |
| Alternative scenario | |
|---|---|
| Recommendation | BUY STOP |
| Entry Point | 116.05 |
| Take Profit | 120.40 |
| Stop Loss | 113.00 |
| Key Levels | 108.00, 113.50, 116.00, 120.40 |
Current trend
ExxonMobil Corp. shares are trading in a correction trend near the level of 115.00.
The management has begun restructuring the country’s largest shale oil producer Pioneer Natural Resources Co., acquired in May for 60.0B dollars, while announcing that it does not intend to make significant changes, which will allow it to preserve up to 80.0% of jobs. The acquisition will help ExxonMobil Corp. expand its presence in the Permian Basin of West Texas and southeastern New Mexico, the richest oil-producing region in the Western Hemisphere.
As for the company’s financial condition, the Q2 report recorded a recovery in indicators almost to the most successful 2022. Thus, revenue of 93.06B dollars exceeded both the 90.46B dollars forecast by analysts and the 82.91B dollars in the same period a year earlier. Earnings per share amounted to 2.14 dollars compared to preliminary estimates of 2.03 dollars and 1.94 dollars previously. Increased production in the Permian Basin offset a sharp drop in energy prices due to excess supply of petroleum products, which weakened the profit margin.
As for dividends, a new payment of 0.95 dollars per share is scheduled for September 10, after which an annual indexation will take place, while the quarterly yield will be stable at 3.19%.
Support and resistance
On the daily chart, the price is trying to break out of the ascending channel with boundaries of 123.00–115.00.
Technical indicators are in a sell signal state, which is gradually strengthening: the AO oscillator histogram is forming correction bars, and the fast EMAs on the Alligator indicator have recently crossed the signal line downwards.
Support levels: 113.50, 108.00.
Resistance levels: 116.00, 120.40.
Trading tips
Short positions may be opened after the price consolidates below the support level of 113.50, with the target at 108.00 and stop loss 116.00. Implementation period: 7 days or more.
Long positions may be opened after the price consolidates above the resistance level of 116.00, with the target at 120.40. Stop loss is 113.00.
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