The american oil industry is on the verge of collapse, at least when we look at Exxon Mobil ... NYSE:XOM
I have great interest in the american oil industry companies such as Exxon Mobil or Chevron, both have made enormous losses since Covid-19 hit the world. Both Stocks are extremely cheap right now and are possibly setting up for a +100% rallye , at least if we don't break the previous lows. In the last days i spent several hours looking at the chart and price action of Exxon Mobil , i came to the conclusion that we have formed a very big 1-2 Setup.
Primary scenario: Likelyhood 55% We are forming a solid 1-2 setup and are setting us up for a 30% rallye to the price target of green wave 1.
Alternative scenario: Likelyhood 45% My alternative scenario will get triggered if we break the previous low @32.21$, Exxon Mobil will get slaughtered again. A drop of 15%-20% is very likely and will crush many bullish expectations.
Beware that i don't have any open long positions, i will wait for a solid bullish impulse and then announce my entries!
What do you expect the next support level to be if we break the previous low?
Mendenmein-Capital
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@pyffgenius, if we should break the resistance at 32.21$ we still have space to correct to 30.11$
But if we should drop below 30.11$ i can only wish everyone good luck. It's possible that we could reach prices as low as 20$.
UnknownUnicorn12070690
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nah its about to takeoff
Mendenmein-Capital
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@dixonpark, Lets see what happens, i am looking a long entry too.
But keep in mind that Exxon Mobil got kicked out of the Dow30 and thats one of the reasons why XOM got beaten up this hard.
Ontheclockdock
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@Mornau-Research, I'm long on some jun2021 calls, this week looks to be critical. Hoping it bounces off the 32.18 level otherwise rip my position. (aka stop loss triggered)
Mendenmein-Capital
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@Ontheclockdock, I wish you best of luck mate, its a shame that the once greatest company of the world has suffered this hard.
Declutter69
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Hi Mornau research, based on today’s price movement can you confirm the trend is reversing from downtrend and tracking on your green arrow ?
Mendenmein-Capital
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@Declutter69, I already published a newer Analysis, for the moment its possible that we built a 1-5 Structure.
But keep in mind that oil stocks are still in a huge crisis and buying the bottom won't be easy.
The trend might reverse long-term so stay tuned! Good Luck