Exxon Mobil - Beat its earnings last week and now may have found some support here for a push towards $111 a share

Taking a look at Exxon Mobil after it beat its earnings expectations last week. Currently, its stock is trading at around $102.47 a share and there is a possibility that a new support level may have been formed. Looking at the chart from a technical point of view, an engulfing candlestick has appeared on the weekly timeframe on the week commencing 22^nd of January. This can at times be a bullish indication of increased volume and a build of momentum. The last time we saw an engulfing candlestick was on the week commencing 17^th of July, where the share price then went on to rise around 13%. Analysts have an average 12-month rating of $125 and a low of $111, which could be argued that Exxon is slightly undervalued compared to its current share price. A rise from the current share price towards $111 offers a potential gain of around 8.3%. Furthermore, Exxon has a PE ratio of 10.2, which is cheaper than its competitor Chevron, making it more attractive for investors in terms of valuation.

Back to the chart, the primary support is now at $95.77 (white trendline), and a break below it could then see a further decline towards the support of $83.47 (green trendline). However, such a significant drop in this stock would require the price of oil to fall drastically. China demand is the key here in the coming months for oil companies. Towards the upside, resistance sits at last week’s high of $105.17. A break and close above would certainly build momentum for an extension towards the low target of $111. Looking at the technical indicators, the MACD seems like it could turn positive, which also happened similarly back in July of last year (leading to the 13% rise). The RSI is flat/neutral as it reads 47.