Steversteves

Will XOM Break out?

Steversteves Updated   
NYSE:XOM   Exxon Mobil
XOM made for a predictable Short play today.
XOM Retested that 2019 supply zone and was again rejected. It respected support at around 74 looks to be heading back up to re-test 2019 again.
The two potential outcomes I see based on the chart are:

1. Retest of 2019 resistance followed by bounce back to that 74 support, followed by a bounce back up and potentially beyond (shown in teal colour).
2. Retest of 2019 resistance followed back potential bounce back to that 8 year support line (purple).

Of course there are also other outcomes, however I am leaning to one of the previous two options.

Linear Regression modelling shows the following (Based on January data):

Potential Highs tomorrow: 76.22 (SD=3.4).
Probability of reaching a high of </= 76.22 is 92%.
Probability of reaching a high of >/= 76.22 is 8%.

Potential Lows Tomorrow: 74.50 (SD=3.3)
Probability of reaching a low of </= 74.50 is 93%.
Probability of reaching a low of >/= 74.50 is 7%. (Meaning the probability that the stock remains above 74.50 tomorrow nd doesn't go lower is 7%).

What I am watching for:
Bounce of 74.37 to the upset for a long play.
Rejection of 76 for a short play (Was my play today).


DISCLAIMER:
Not financial advice.

Comment:
So looks like #1 is the correct answer!
XOM finally broke into that 2019 Supply Zone, the buttom of which has become new support (~75.90).
I will be looking for a long entry tomorrow if we can retest this 75.90 area, but it looks like its bull flagging currently.

Premium indicators and content have launched! Get access at: www.patreon.com/steversteves
Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.