Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Time to take the RED Pill - 28th May 24
US Economy Slowing Slipping into Recession, But Not There Yet - 28th May 24
Gold vs. Silver – Very Important Medium-term Signal - 28th May 24
Is Gold Price Heading to $2,275 - 2,280? - 28th May 24
Stocks Bull Market Smoking Gun - 25th May 24
Congress Moves against Totalitarian Central Bank Digital Currency Schemes - 25th May 24
Government Tinkering With Prices Is Like Hiding All of the Street Signs - 25th May 24
Gold Mid Tier Mining Stocks Fundamentals - 25th May 24
Why US Interest Rates are a Nothing Burger - 24th May 24
Big Banks Are Pressuring The Fed To Losen Protection For Depositors - 24th May 24
Another Bank Failure: How to Tell if Your Bank is At Risk - 24th May 24
AI Stocks Portfolio and Tesla - 23rd May 24
All That Glitters Isn't Gold: Silver Has Outperformed Gold During This Gold Bull Run - 23rd May 24
Gold and Silver Expose Stock Market’s Phony Gains - 23rd May 24
S&P 500 Cyclical Relative Performance: Stocks Nearing Fully Valued - 23rd May 24
Nvidia NVDA Stock Earnings Rumble After Hours - 22nd May 24
Stock Market Trend Forecasts for 2024 and 2025 - 21st May 24
Silver Price Forecast: Trumpeting the Jubilee | Sovereign Debt Defaults - 21st May 24
Bitcoin Bull Market Bubble MANIA Rug Pulls 2024! - 19th May 24
Important Economic And Geopolitical Questions And Their Answers! - 19th May 24
Pakistan UN Ambassador Grows Some Balls Accuses Israel of Being Like Nazi Germany - 19th May 24
Could We See $27,000 Gold? - 19th May 24
Gold Mining Stocks Fundamentals - 19th May 24
The Gold and Silver Ship Will Set Sail! - 19th May 24
Micro Strategy Bubble Mania - 10th May 24
Biden's Bureau of Labor Statistics is Cooking Jobs Reports - 10th May 24
Bitcoin Price Swings Analysis - 9th May 24
Could Chinese Gold Be the Straw That Breaks the Dollar's Back? - 9th May 24
The Federal Reserve Is Broke! - 9th May 24
The Elliott Wave Crash Course - 9th May 24
Psychologically Prepared for Bitcoin Bull Market Bubble MANIA Rug Pull Corrections 2024 - 8th May 24
Why You Should Pay Attention to This Time-Tested Stock Market Indicator Now - 8th May 24
Copper: The India Factor - 8th May 24
Gold 2008 and 2022 All Over Again? Stocks, USDX - 8th May 24
Holocaust Survivor States Israel is Like Nazi Germany, The Fourth Reich - 8th May 24
Fourth Reich Invades Rafah Concentration Camp To Kill Palestinian Children - 8th May 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

What’s Next for Exxon Mobil?

Companies / Oil Companies Jan 21, 2024 - 06:45 AM GMT

By: Submissions

Companies

The sellers hit a fresh multi-week low during yesterday’s session, testing important supports.

Pushing to a New Low

As I mentioned at the beginning, the bears managed to push the price to a new low - to the lowest level since mid-March 2023! What events contributed to this deterioration? What can we expect next week? Answers to these questions you’ll find in today's article. Have a nice read!




Let’s start today’s analysis with the quote from the last commentary on Exxon Mobil published at the beginning of the year:

(…) what might happen if, however, the buyers fail and the bears push the price down… Well, if the sellers were able to close the green gap (marked on the daily chart), then the path to the December lows and the green support zone (95.51-97.08) seen on the weekly chart would be open.

From today’s perspective, we see that the situation developed in tune with the pro-declining scenario, and the sellers, after a battle with their opponents, were able to push the price to the above-mentioned target during yesterday’s session.

What’s next?

Before we find the answer to this question on the charts, let’s take a closer look at the daily chart and find out what happened during the recent two weeks.



Looking at the daily chart, we see that the green gap (98.92-99.85) created on Dec. 14, 2023, was strong enough to stop the sellers at the end of the previous year and trigger a rebound in the first week of this year.

Thanks to this upswing, the bulls tested the strength of the bearish engulfing pattern (formed on Dec. 20, 2023) and the orange resistance zone. Although they managed to hit a fresh multi-week high of 104.57 on Jan.4, the combination of resistances defeated them and they collapsed under the onslaught of the bears, which resulted in a daily closure below the peak of Dec. 20, 2023.

In this way, the mentioned pro-bearish formation remained in the cards, which in combination with an invalidation of the earlier small breakout above the late-Dec. high and sell signals generated by the indicators encouraged the sellers to act once again (especially when we factor in the fact that thanks to the Jan.4 candle, they've gained another ally – a pro-declining dark cloud cover candlestick pattern).

Thanks to their attack, the price opened the following week with a big red gap, which accelerated declines and resulted in a closure of the green gap formed on Dec. 14, 2023. Although the bulls lost their important ally, they pushed the price once again on Jan. 12 and tried to close the red gap.

As you see on the chart, they failed, which translated into another red gap at the beginning of the week. This show of weakness triggered further deterioration and the sellers tested the strength of the bulls and their ally (a bullish engulfing pattern created on Dec. 13) on Wednesday.

Unfortunately (for the bulls), another disappointment occurred here, which led to the creation of a third gap and a test of the lower border of the red declining wedge and the green support zone marked on the weekly chart.

So, what’s next?

Taking into account the bulls’ weakness in recent weeks and all the above-mentioned bearish factors, it seems that going north and regaining lost levels will not be an easy challenge. In my opinion, the bulls will have to show great determination and will to fight to encourage other buyers to return to the trading floor.

What could be the first sign of improvement?

A successful breakout above the upper border of the red declining wedge (currently at around 98.14), which will also mean the closure of the first red price gap. Only such an event can be a starting point for considering changing the short-term trend, which is currently downward. In other words, until we see a clear bullish strength on the chart, another test of the lower border of the green support zone (marked on the weekly chart) and the 61.8% Fibonacci retracement can’t be ruled out.

Summing up, the very clear weakness of the bulls since the beginning of the year and the loss of a valuable ally resulted in the formation of a fresh multi-week low of 95.82 during yesterday’s session. Although the nearest supports triggered a small rebound, another test of their strength can’t be ruled out in the coming day(s).

If you’d like to know what the current technical picture of crude oil is or to find out what arguments the bulls have or what allies do the bears have, I encourage you to subscribe to Oil Trading Alerts, where you’ll find the answers to these (and many other) questions.

Have a wonderful weekend and see you on Monday.

Thank you.

Anna Radomski

Founder, Editor-in-chief

Tools for Effective Gold & Silver Investments - SunshineProfits.com

Tools für Effektives Gold- und Silber-Investment - SunshineProfits.DE

* * * * *

About Sunshine Profits

Sunshine Profits enables anyone to forecast market changes with a level of accuracy that was once only available to closed-door institutions. It provides free trial access to its best investment tools (including lists of best gold stocks and best silver stocks), proprietary gold & silver indicators, buy & sell signals, weekly newsletter, and more. Seeing is believing.

Disclaimer

All essays, research and information found above represent analyses and opinions of Przemyslaw Radomski, CFA and Sunshine Profits' associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Przemyslaw Radomski, CFA and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Radomski is not a Registered Securities Advisor. By reading Przemyslaw Radomski's, CFA reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Przemyslaw Radomski, CFA, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in