Exxon Mobil Breaks Out And Has Been Flying Higher: What's Next?

Exxon Mobil Corp XOM shares are trading higher Tuesday alongside other oil companies amid tight oil supply and optimism surrounding global demand recovery despite a rise in COVID-19 cases. The company also acquired a 49.9% stake in Biojet AS.

Exxon Mobil was up 4.11% at $71.26 Tuesday afternoon at publication.

See Also: Why Exxon Mobil, BP And Shell Shares Are Rising

Exxon Mobil Daily Chart Analysis

• The stock has recently broken past resistance and is seeing a strong bullish run upward. The $63 level was previously an area of resistance, but may now hold as an area of support as the price sits above the level. Another area where support may be found is near the $52 level.
• The stock trades above both the 50-day moving average (green) and crossed above the 200-day moving average (blue). This indicates the sentiment is turning bullish, and each of these moving averages may hold as an area of support in the future.
• The Relative Strength Index (RSI) has been climbing for the past few weeks and now sits at 77. This RSI is well into the overbought range and shows that buyers have been pouring into the stock. The price may continue to rise if the RSI can stay in the overbought range.

What’s Next For Exxon Mobil?

The stock has been flying higher after crossing above the $63 resistance level. The stock may continue to run for a period of time, but will eventually start to cool off. When it cools back off it may now find support near the $63 level. Bulls are hoping to see consolidation above this level and then go on to make another bullish push in the future. Bears are looking for the stock to start falling lower and cross back below the $63 level and both of the moving averages.