Current trend

Shares of ExxonMobil Corp., an American oil company, resumed growth and tested the 117.19 mark (Murrey level [7/8]).

Investors are still counting on a further reduction in interest rates, however, according to the latest statement by the head of the US Federal Reserve, Jerome Powell, the amount of adjustment will not exceed 50 basis points by the end of the year. Meanwhile, the Chinese authorities announced a large package of support measures to stimulate economic growth to the target level of 5.0%: in particular, the People's Bank of China recently lowered the mortgage interest rate by 0.5%, and simplified the reserve rules for commercial financial institutions. Investors hope that these steps by the American and Chinese regulators will contribute to a significant increase in global energy demand.

The long-term support for the quotes is provided by the escalation of the conflict in the Middle East: after the start of the Israeli ground operation in Lebanon, Iranian troops may be involved in military operations, and the risks of disruptions in oil supplies from the region increased significantly. In addition, yesterday Reuters sources said that the head of the Nigerian division of ExxonMobil Corp. Shane Harris met with local authorities to discuss cooperation: for example, the volume of investments in offshore oil production may amount to 10.0 billion dollars, and the biggest share of the funds will be directed to the development of the Owo project. In addition, over the next few years, ExxonMobil Corp. can invest up to 2.5 billion dollars annually to increase production to 50.0 thousand barrels per day. The parties are currently discussing the terms of the deal and securing a number of fiscal preferences for the company.

Support and resistance

The asset is testing the 117.19 mark (Murrey level [7/8]), consolidation above which will open up the opportunity to continue the uptrend towards the targets of 120.31 (Murrey level [ 1/8]) and 121.88 (Murrey level [ 2/8]). The key for the "bears" is the level of 114.06 (Murrey level [5/8]), supported by the central line of Bollinger Bands, the breakdown of which will ensure the development of a decline towards the targets of 109.38 (Murrey level [2/8]) and 107.81 (Murrey level [1/8]).

Technical indicators confirm the possibility of continued growth: Bollinger Bands are horizontal, MACD has moved into a positive zone, and Stochastic is reversing up.

Resistance levels: 117.19, 120.31, 121.88.

Support levels: 114.06, 109.38, 107.81.

Trading tips

Long positions can be opened above 117.19 with targets of 120.31, 121.88 and a stop-loss around 115.60. Implementation period: 5–7 days.

Short positions should be opened below the level of 114.06 with targets of 109.38, 107.81 and a stop-loss around 116.20.