XOM Exxon Daily Chart Falling Wedge Positive Divergence Bounce H&S ISM Trade

XOM Exxon daily chart shows the rising wedge and negative divergence creating the top in late April and the spank down that was expected and followed. Note how the white lines show a falling wedge and positive divergence now so a bounce is in order. The XOM weekly chart is weak and bleak so after the bounce occurs the intermediate and longer term down trend will resume.

The 200 MA will act as support so the bounce should occur this week from the 76.1-76.8 area. Note the H&S in play now which targets the big gap below at 70, which will probably be achieved as summer moves along. The ISM Trade buys energy the last few days of the month going into the ISM number (Friday) on the first of the month. This quickie trade has trended like this and been a winner for many months and considering the positive divergence in place now, this week should be no different.

This same near term positive divergence look and quickie long energy trade is visible across other energy and oil stocks so there are many things to play including XOM, XLE, ERX and OIH to name a few. Trading must be nimble since you do not want to remain long after the pop occurs--you'll want to take your money and get out of Dodge since the weekly charts will take over again with intermediate term weakness ahead. Thus, the idea is to buy energy tomorrow, on weakness is preferred, but these levels are fine, and sell on Friday or the following Tuesday, taking your profits-- or lumps if markets do not cooperate. Seasonality helps as well since Thursday and Friday should be bullish days ahead of the holiday. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.