Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Exxon Mobil (XOM) Tests 200-Day Moving Average Amid Sharp Swings In Energy Prices

Published 20/03/2023, 21:04
© Reuters.  Exxon Mobil (XOM) Tests 200-Day Moving Average Amid Sharp Swings In Energy Prices
XOM
-
SHCAY
-
EXXO34
-
ENRY
-

Benzinga - Exxon Mobil Corporation (NYSE: XOM), the biggest U.S. oil company with more than $400 billion of market capitalization, has witnessed an unfavorable price action recently, struggling up and down the important 200-day moving average (DMA) at about $102 per share.

Exxon Mobil shares fell below their 200-DMA support on March 15, after maintaining above this level since December 2021. The momentum technical indicator, such as the 14-day relative strength index (RSI), also hit oversold territory for the first time since August 2021.

Attempts to reclaim the 200-DMA failed on Thursday and Friday last week, although the price action recovered marginally above this level on Monday this week.

It might too early to say if this technical breakthrough will be sufficient to dispel worries of more downside in Exxon Mobil, given the issues associated with the banking sector and its negative impacts on the economy are still far from solved.

Exxon Mobil Corp. (XOM) Daily Price Chart: TradingView

XOM Trades “Rich” Compared to Oil Prices

WTI oil prices dropped 10% to $65 per barrel last week, marking their worst weekly performance since April 2020.

The turbulence in the banking industry is, of course, a major factor influencing oil prices, after the failures of tech startup-focused Silicon Valley Bank and New York's Signature Bank, as well as the takeover of Credit Suisse Group AG (NYSE: CS) by UBS Group AG (NYSE: UBS) over the weekend.

Read Next: Exxon Mobil Corporation Analyst Rating

The injection of international liquidity lifelines engineered by global central banks over the weekend resulted in a slight bounce in oil prices and risky assets on Monday. On Monday, the WTI price increased to $67.7 per barrel.

Yet, Exxon Mobil trades "rich" relative to current oil prices and the correlation has considerably weakened since October 2022, as price drops in the commodity have not been accompanied by a comparable fall in the stock price.

Exxon Mobil has a forward price-to-earnings ratio of 9.4, compared to the industry average of 11.6, according to Benzinga Pro data.

Oil WTI prices vs. Exxon Mobil Corp. – Chart: TradingView

Read More: ExxonMobil Reports Successful Startup Of Its Beaumont Refinery Expansion Project

Photo: Shutterstock

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.