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Exxon Soars in the First Session of the Month


Exxon (NYSE:XOM) advances in June's trading kick-off. The energy company gains 1.78% reaching $46.28 per share in the first session of the week.

The mid-term Elliott wave perspective shows that Exxon Mobil is advancing in a horizontal triangle, which could end in the following trading sessions.

XOM, in its hourly chart, exposes a corrective upward structural series that began on March low at $30.11 per share, when the energy company ended its massive sell-off. The first recovery developed by Exxon, carried up the price in a three-wave sequence lifting the price until $46.71 per share, completing its wave ((a)) of Minute degree labeled in black.

Once the price found resistance at $46.71, XOM started to advance mostly sideways, building a horizontal contracting triangle which currently develops its wave (e) of Minuette degree labeled in blue. According to the Elliott wave theory, the triangle pattern tends to appear in waves 4 and B. In this case, XOM runs in its wave ((b)) of Minute degree labeled in black.

In practical terms, the triangle pattern suggests a pause of the previous movement before developing a new move in the same direction as the first movement. This technical consideration, along with the definition of corrective waves, leads us to conclude that Exxon Mobil should develop a new rally, which should have five internal movements.

On the other hand, the canalization technique applied in wave analysis drives us to observe that XOM could soar likely to $55.40 per share, a level that corresponds to 100% of the Fibonacci expansion. Another scenario considers the possibility that XOM could advance until the zone of the upper line of the ascending channel as a dynamic resistance.

There is a possibility that Exxon Mobil falls near the end of wave (c) are identified in blue at $40.21. However, the price action shouldn't drop below the end of wave (a) at $38.94. If this occurs, the upward scenario will be invalid, and the structure in progress will correspond to a complex corrective wave.

In conclusion, in the short-term, our preferred positioning for XOM remains on the bullish side until the completion of wave ((c)) of Minute degree labeled in black. In this sense, while the price remains above $38.94, the upward scenario will continue being bullish.

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Source: https://www.cryptorocket.com/news/exxon-soars-in-the-first-session-of-the-month/
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