Saturday, November 23, 2013
XOM Exxon Mobil Weekly Chart Overbot Rising Wedges Negative Divergence
The yellow rising wedge peaked in July causing the spank down to 85. The white channel was under development and would begin a series of lower lows and lower highs. Then, launch time, when Warren Buffet disclosed a large position. Price catapults from 85 to 96 in one-month's time, +13%. This is a pace of about +3 or +4% per week. Traders worship at the Oracle's feet. The chart was rolling over so Exxon is definitely happy to have rich Uncle Warren pat them on the behind and save the day. The indicators have some long and strong shorter term momo (short green lines) so price will need to flutter up inside the red edge for a week or three, or month or two, and then receive the next spank down due to the negative divergence (red lines). The daily chart has formed an island above 94 so price may perform an island reversal pattern on the way back down where it leaks to 94, and then collapses, gapping down to 93 and lower in a heartbeat. As XOM moves into 2014, price should seek the white channel again, as the Buffet euphoria subsides. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.