Current trend

This week, the securities of the American oil company ExxonMobil Corp. resumed growth, regaining some of the previously lost positions, and are currently trading around 110.50. The instrument is supported by two main factors – the aggravation of the geopolitical situation in the Middle East and the likely purchase of its competitor Pioneer by ExxonMobil Corp.

The conflict that began between the Israeli army and the militants of the Arab movement Hamas risks prolonging and destabilizing the situation throughout the region, which could cause disruptions in oil supplies to the market. The probability of this scenario pushes up the prices of "black gold" and shares of oil companies. Also, the growth of ExxonMobil Corp. securities is facilitated by the expectation of its acquisition by Pioneer Natural Resources, a direct competitor in the US market. The deal can be announced today. According to calculations, ExxonMobil Corp. will pay Pioneer USD 250 per share, and the total amount will be USD 60 billion, which will be the largest acquisition of the corporation since 1998. After the deal, the company will gain access to the fields of the Permian oil basin, which allow for low-cost production of "black gold" for at least ten years. Closing the deal promises profit growth, which is already big: last week, the management of ExxonMobil Corp. reported an increase in the indicator in Q3 2023 by USD 1.3B due to an increase in world oil prices and by USD 1.1B due to an increase in refining volumes.

Support and resistance

The price is at 110.50 and may continue rising to the levels of 112.50 (Murrey level [4/8]), 115.62 (Murrey level [5/8], the central line of Bollinger Bands) and 118.75 (Murrey level [6/8]). The key for the "bears" is the mark of 106.25 (Murrey level [2/8]), the breakdown of which will allow the decline to develop to 103.12 (Murrey level [1/8]) and 100.00 (Murrey level [0/8]).

Technical indicators do not give a clear signal: Bollinger Bands are pointing down, MACD is growing in the negative zone, Stochastic is reversing upwards from the oversold zone.

Resistance levels: 112.50, 115.62, 118.75.

Support levels: 106.25, 103.12, 100.00.

Trading tips

Long positions can be opened from the current level with targets of 112.50, 115.62, 118.75 and stop loss near 108.80. Implementation period: 5-7 days.

Short positions may be opened below the 106.25 mark with targets of 103.12, 100.00 and stop loss at 108.50.