XOM Reversal

BY LICIA LESLIE

August 6, 2023

Hi Shoppers,

I thought it might be time for a little Japanese candlestick lesson.

There is a perfect specimen of a possible change in trend candle in Exxon Mobil (Ticker: XOM).

As you can see, XOM has been trading in a range since May 10th.

The high on that range is $109 and the low price comes in at $102.

On Friday, XOM traded a high of $109.24 before reversing and closing lower.

The candle created on Friday is called a shooting star.

Check it out:

The shooting star is a change in trend candle that is found at the top of an uptrend.

XOM has been in an uptrend since it traded down to $100.22 on July 17th.

During the shooting star session the bulls are still in control as the stock makes a new recent high, creating a long upper shadow.

The stock then reaches a point where the longs sell, and the shorts come in to sell also, thereby driving the stock lower and it closes on the low of the session.

The shooting star upper shadow (white line) should be twice as long as the real body (red part) and does not have a lower shadow.

A shooting star can be red or green.

XOM could possibly be ready to rollover and trade lower.

Friday’s candle looks to be a shooting star and the stock traded up to the high end of its trading range at $109 before reversing and closing lower.

As always, wait for the confirmation the following day.

So watch for XOM to open and trade lower tomorrow.

Also, wait for the stock to trade for at least an hour in that direction.

Once XOM does all that, check out the Aug25 puts:

I’m thinking XOM can trade back down to at least its 50 day moving average which comes in at $105.05 and below there down to the lower end of the trading range at $102.

The 107/102 put vertical may not be a bad deal.

Use a close over $109 as your stop loss.