4 Trade Ideas for Exxon Mobil: Bonus Idea

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

Exxon Mobil, $XOM, comes into the week started up out of a 14 month base last week and then stalled as it made a new all-time high. Some might argue the base is even 2 years longer than that back to October 2022. Either way, a long base break like these is often followed by a big move. The stock has a RSI in the bullish zone with the MACD positive and rising as the Bollinger Bands® open higher. There is no resistance above 130.25. Support is at 125.25 and 124. Short interest is low at 1%. The stock pays a dividend with an annual yield of 3.17% and as traded ex-dividend since November 14th.

The company is expected to report earnings next on January 30th. The February options chain shows the biggest open interest is at the 115 put strike. On the call side it is biggest at 125 then 130. In the March chain it is biggest at the 100 then 110 put strikes and from 120 to 130 on the call side. Finally, in the April chain, open interest is biggest from 100 to 110 on the put side and at 135 on the call side.

Exxon Mobil, Ticker: $XOM

Trade Idea 1: Buy the stock on a move over 130.25 with a stop at 125.25.

Trade Idea 2: Buy the stock on a move over 130.25 and add a February 130/125 Put Spread ($2.20) while selling the April 140 Call ($2.26).

Trade Idea 3: Buy the February/March 135 Call Calendar ($1.19) while selling the February 120 Put (85 cents).

Trade Idea 4: Buy the April 120/135/145 Call Spread Risk Reversal (16 cents).

Premium Content

The Best

The Rest Premium

Free Content

The Rest

If you like what you see sign up for more ideas and deeper analysis using the Get Premium button above.   

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 with January options expiration in the books, saw equity markets exhibit strength holding up or rising despite mixed inflation data and a Jerome Powell showdown with the President.

Elsewhere, look for Gold to continue the uptrend and more all-time highs while Crude Oil drifts higher at the bottom of consolidation. The US Dollar Index continues the short term move to the upside in consolidation while US Treasuries continue to hold at 4 month lows in consolidation and looking better lower. The Shanghai Composite looks to continue the in the uptrend at 10½ year highs after breaking consolidation while Emerging Markets make their first new all-time high in almost 5 years as they continue in their uptrend.

The Volatility Index looks to continue to hold low in the normal range making it easier for equities to move higher. The charts of the SPY, the IWM and the QQQ remain strong on the longer timeframe with the IWM leading. On the shorter timeframe the IWM is also strong forging new all-time highs. The SPY and QQQ are having a harder time mired in consolidation. 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.

blog comments powered by Disqus
Dragonfly Caps Blog