It’s on for Exxon


Hey There Income Hunters,


In late January, I wrote a bullish Power Income report on Exxon Mobil Corp (Ticker: XOM) and shared the trade I put on. See it below …



We haven’t even gotten a federal infrastructure spending package (yet), but …


My trade is already up 70% — a 2,100% annualized return!


Power Up

The Power Income Valuation Model has a $73+ fair value price for XOM based on earnings per share and dividend growth …

However, the new high of 52.36 on Monday was not met with a new high in the Relative Strength Index (RSI) — a very helpful momentum indicator — meaning we got a negative price/RSI divergence … which is a great signal for reversal patterns.


A key Power Income Rule is Respect the RSI, so I took profits and will look to reset the trade a little bit lower …


Bring it Home

The RSI Divergence is a very helpful technical tool for Income Hunters…


A negative divergence is constructed in three simple steps:

  1. Price makes a new high and RSI does the same

  2. Price corrects then continues higher and makes a new high

  3. RSI fails to make a new high


In the “Big Picture” the energy sector has a long way to go. 


XOM was turbo-charged the past few sessions, so now is GREAT timing to sell a rich stock and move into an undervalued one.

                  

Tomorrow we’ll analyze British Petroleum (Ticker: BP), which I think offers great value.


Until then …


Live and Trade With Passion My Friends,


Griff

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