EXXonMobil crop.:decline following oil quotes

Current trend

Shares of ExxonMobil Corp. are declining, following the quotes of "black gold" and are currently at the level of 81.70.

The reason for the correction was a surge in the incidence

of coronavirus infection in China, which caused investors

to fear a decline in production of the world's main importer

of oil. To reduce the risks of infection, the authorities at the end of last week introduced quarantine in the large industrial center of Shenzhen. The exit from the Russian market may also negatively affect the company's income, in particular, the withdrawal from the Sakhalin-1 project, in which ExxonMobil Corp. had a 30% stake.

In general, according to experts, in the short term, the rising stock price may be supported by an increase in energy prices, which is fixed against the background of the continuation of a special military operation on the territory of Ukraine initiated by the Russian authorities. Nevertheless, in the long term, securities may be under pressure due to the rapid development of renewable energy sources and the transition of states to more economical and environmentally friendly production.

Support and resistance

On the daily chart at the level of 88.92, the formation of the Evening Star candlestick analysis model is observed, after which the asset showed a decline to 81.90. Next, a Shooting Star figure was formed, which signals the increasing activity of sellers in the market. At the moment, the instrument has formed a Hanging Man pattern, which is a sign of a reversal at the top; it is expected to decline to the 79.63-59.44 zone. If the “pulls” hold the support level of 79.63, an alternative scenario can be considered with the movement of quotations to the area of 84.37-101.83.

Resistance levels: 84.37, 88.92, 95.22, 101.83.

Support levels: 79.63, 73.44, 66.37, 59.44.