markets have been responding positively to the cut by OPEC and this has effected the sentiment of crude heavy stocks like XOM
. In Sept of this year a double bottom
formation was seen as confirmed by MACD
indicator followed by a sharp
increase in prices. The 50 day EMA
shows signs of slight uptrend. I would expect a correction in the price down to the 48 levels. Stocks like XOM
follow the change in the WTI closely, so this would present opportunities for shorting.
However note that Crude prices fluctuates sharply based on news about supply and demand
, hence these need to be kept in cognizance before taking positions in this stock.