4 Trade Ideas for Exxon Mobil: Bonus Idea

Here is your Bonus Idea with links to the full Top Ten:

Exxon Mobil, $XOM, has struggled since topping in 2014. Matters got much worse in 2020 and it fell to levels not seen since 2002. A quick bounce found it meet resistance below the 200 day SMA in June and then fall back to the prior low at the end of October. Since then it has been moving higher. In December it moved over the 200 day SMA for the first time since April 2019. It topped in January and pulled back only to reverse last week and end back at that January high.

The RSI is rising in the bullish zone, with a Positive RSI Reversal targeting a move to 54. The MACD is positive and crossing up. The Bollinger Bands® have squeezed, often a precursor to a move. There is resistance at 50.50 and 55.50 (above that price confirms a double bottom) then 57.75 and 60 before 63 and 68 then 69 and 71.50. Support lower comes at 48 and 45 then 42.50. Short interest is low at 1%. The stock pays a dividend with an annual yield of 6.97% and begins trading ex-dividend on February 9th. The company is expected to announce earnings next on April 29th.

The February options chain shows the highest open interest at the 45 put strike followed by the 42.50 strike and 40 strike. On the call side it is biggest at the 50 strike but very large at 45 and 55 strikes as well. The March options have biggest open interest at the 47.50 strike on the put side and from 47.50 to 50 and again at 55 on the call side. In the April options open interest is biggest at the 45 put and spread from 40 to 55 on the calls side. Finally, the May options, covering the next earnings report, has the biggest open interest at the 40 put and the 50 call.

Exxon Mobil, Ticker: $XOM

Trade Idea 1: Buy the stock on a move over 50.50 with a stop at 47.50.

Trade Idea 2: Buy the stock on a move over 50.50 and add a March 47.50/45 Put Spread ($0.85) while selling the May 60 Calls (80 cents).

Trade Idea 3: Buy the May 52.50/March 55 Call Diagonal ($1.80) and sell the April 42.50 Put (90 cents).

Trade Idea 4: Buy May 52.50/60 Call Spread and sell the May 40 Put for 65 cents.

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After reviewing over 1,000 charts, I have found some good setups for the week.  These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which heading into the second week of February, saw equity markets showed resilience as they rebounded from end of January sell off.

Elsewhere look for Gold to continue its pullback while Crude Oil resumes its uptrend. The US Dollar Index may be rounding out a bottom towards a reversal while US Treasuries continue in their downtrend. The Shanghai Composite looks to continue the pullback in the uptrend while Emerging Markets ready to attack new all-time highs.

The Volatility Index looks to have settled back to low levels making the path easier for equity markets to the upside. Their charts look strong, especially on the longer timeframe. On the shorter timeframe both the QQQ and SPY did print indecision candles which may influence the short term. The IWM looks ready to take the lead with a new leg higher. Use this information as you prepare for the coming week and trad’em well.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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