Buying Exxon Mobil After Swing Trading Long Signal

Piker Trading Signal hit a buy on the Energy Sector. This sector can be looked at with XLE which is the Energy ETF. The last 3 signal has produced about a 3% return in the sector of a hold of 3-4 days. One reason to get long is that we have a key component of the Energy ETF XOM nearing some support and found a short-term bottom.

XOM Recent Decline

XOM has fallen 12% over the last few months as it fell from its highs. This is a combo of inflation fears falling, and oil demand falling, with a sprinkle of yields rising. But now XOM is nearing key support and would need a significant amount of pressure to break below these levels.

Swing the Trading at Support Levels

XOM has support at the 103-100 level, this 100 level is a strong basing area, you can see on the weekly chart below. This is confirmed with XOM bouncing off the 103 level 3 times this week. This is clearly a support area and a showing buying pressure. It will be hard for the bears to break this 100 level, given the long-term support and the psychological level of $100. As a long, it gives us a nice easy stop can be even lower at 99.90.

Signal Says Go Long

The Piker Signal says to go long here, with a key stop in place the next idea is where to set a target. Our first target is the unfilled gap at 106. Stocks tend to want to fill their gaps on the upside or downside. Next potential target is the trendline and the 200 day Moving average at 108. This are the intital targets and can be adjusted based on the price action. There is an unfilled gap at 115 which would take a lot for XOM to get there but not crazy.

A Dividend Trade

XOM Isn’t the sexiest stock and isn’t going to rip 20% in two days, but our signal presents a great spot to enter a reliable stock with a decent dividend.

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