fb&XOM/BRENT Forecast | Exxon Mobil cuts costs | IFCM UK

Technical Analysis &XOM/BRENT : 2020-10-26

Recommendation for XOM Oil:

Strong SellSellNeutralBuyStrong Buy

Above 0,373

Buy Stop

Below 0,342

Stop Loss

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Senior Analytical Expert
Articles 1646
MA(200) Neutral
Fractals Neutral
Parabolic SAR Buy
Bollinger Bands Neutral

Chart Analysis

IFC Markets Tech Analysis

On the daily timeframe, XOM_Brent: D1 is trying to correct upward from a 7-year minimum and exceeded the downtrend resistance line. A number of technical analysis indicators formed signals for further growth. We do not exclude a bullish movement if XOM_Brent rises above the last upper fractal: 0.373. This level can be used as an entry point. We can place a stop loss below the Parabolic signal and the lower fractal: 0.342. After opening a pending order, we can move the stop loss to the next fractal low following the Bollinger and Parabolic signals. Thus, we change the potential profit/loss ratio in our favor. After the transaction, the most risk-averse traders can switch to the 4-hour chart and place a stop loss, moving it in the direction of the bias. If the price meets the stop loss (0.342) without activating the order (0.373), it is recommended to delete the order: the market sustains internal changes that have not been taken into account.

Fundamental Analysis

In this review, we propose to consider the XOM_Brent personal composite instrument (PCI). It reflects the price action of the stocks of Exxon Mobil Corporation (an American oil company) against Brent oil futures. Will the XOM_Brent quotes increase?

The growth of this PCI means that Exxon Mobil stocks are rising in price faster than oil. Exxon Mobil Corp CEO Darren Woods announced plans to cut staff. This can improve the company's financial performance. Previously, Exxon Mobil reduced operating costs by $1 billion and capital expenses by $10 billion. Now the company's stocks are traded near the 18-year low. At the same time, their dividend yield is the highest among American oil companies and amounts to 10.3%. Exxon Mobil's Q3 2020 earnings will be published on 30 October.

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