XOM testing 2019 supply zone

٢٦ يناير ٢٠٢٢

XOM has really been quite the little champ. It, as long as other oil stocks, have been able to maintain bullish momentum despite the massive crash happening in practically all other sectors. It has broke through his 8 year down trend resistance and has managed to hold this area, even through this selling off of SPX and Dow.

I definitely regret selling my long term holdings of XOM because it really would have hedged the pain we are all feeling from this sell off.

Today was really interesting, I have been watching XOM approach a historic supply zone from 2019. It tested the area and was rejected back down.
It maintains a bullish appearance on Hekin Ashi despite having a slow but sustained sell off today.

RSI is quite overbought however on the daily. I anticipate this bounce off of the previous supply zone/resistance area will lead to a retest of that 8 year downtrend resistance (which is now support) and possibly a bounce back up through that supply zone. This would stabilize the overbought RSI and make XOM appear more stable in a market with heavy selling in other sectors. I think this would make it more appealing for investors and traders to jump in long and bring it back through that supply zone.

Linear regression analysis reveals potentials highs of 76 - 78 in the coming week (if we are to maintain this bullish trend) and potential lows of 72 (lower confidence levels). However, for how XOM is trading currently, my focus is on how it treats that 8 year downtrend line and whether it respects it and bounces, and not so much on LR forecasting.

DISCLAIMER:
These are my thoughts and observations.
Not financial advice.
I am not a financial advisor or know anything about finance ;).

Best of luck!