Exxon Mobil Corporation (NYSE:XOM) Hitting Converted Resistance

Our observations suggest that Exxon Mobil Corporation (NYSE:XOM) is testing a level of longer term converted resistance, which defines a former level of support that had broken.  Converted resistance levels are just as important, sometimes more important, than solidified support or resistance levels might be, so this is important.

Furthermore, on a fundamental basis, our in-house consensus observations suggest that analysts are looking for significant improvement in EPS growth in the year to come.  Although TTM Q/Q growth rates are still expected o be negative next quarter, they too are expected to improve, but not until 2017 will meaningful repatriation of lost EPS b expected to be realized.

In fact, in 2017 our in-house consensus estimates suggest a 79.59% increase in EPS, and if that's true the PE multiple, which is expected to press 35x next quarter, will drop to 20x.  We are not placing a value-factor on 20x at this time, but suggest that investors respect the technicals.  These also update periodically and we would suggest monitoring them for changes over time.  They will change as the trading channels change of course.

Review the Trading Plans:

Technical Summary

Term →Near Mid Long
Bias Neutral Weak Neutral
P1 87.05 83.71 87.83
P2 87.94 89.25 93.62
P3 88.63 94.59 99.02

Long Term Trading Plans for XOM

August 24, 2016, 8:59 am ET

The technical Summary and associated Trading Plans for XOM listed below will help you make important timing decisions for your trades. This data is based on our proprietary analysis for XOM. In addition we offer Market Timing Models and Stock Filters in the links above which may increase the proficiency of the decisions you make.

XOM - (Long) Support Plan

There is no current Support Plan to trigger a buy of this stock at this time. This usually means that there are no clear support levels at this time, so buying the stock as it falls could be considered catching a falling knife. Buy signals only exist if resistance breask higher.
This often is a signal that the stock you are watching is weak. Waiting for a turn higher may be more intelligent than trying to catch a falling knife. In any case, new support levels are usually revised to the database at the beginning of the next trading session.

XOM - (Short) Resistance Plan

Short under 87.83, target n/a, stop loss @ 88.09.
The technical summary data is suggesting a short of XOM as it gets near 87.83, but the downside target is not available from the current data. This tells us to hold that position if it is triggered until a new downside target has been established (updates occur at the beginning of every trading session) or until the position has been stopped. The summary data tells us to have a stop loss in place at 88.09. 87.83 is the first level of resistance above 87.72, and by rule, any test of resistance is a short signal. In this case, if resistance 87.83 is being tested, so a short signal would exist.

XOM Long Term Analysis

XOM EPS Analysis

XOM Growth rate - Yearly

XOM PE chart