2 Oil and Gas Stocks to consider: $XOM and $VNOM (January 2, 2020)
XOM JMIA MO VNOM PM
This is Scott with your Free Chart of the Day. I actually want to talk about two different stocks today in the oil and gas sector. The first one here is Exxon Mobil ( NYSE: XOM ); the last couple of days XOM ( NYSE: XOM ) has just kind of been going sideways consolidating right around the 50-day moving average. On New Year’s Eve we gapped down, pushed up above the 50-day moving average and did it on almost higher than average volume. Today we broke above resistance, again doing it on decent volume.
Now, what makes me bullish on this stock is flipping to the weekly chart. If I flip to the weekly chart and zoom in a little bit here you can see today’s move pushed us above weekly resistance. We weren’t able, for the last three weeks, to get above this level. We did it today and there is still one more trading day in the week, so looking for more here from Exxon Mobil ( NYSE: XOM ). I would watch for a move above $71.00 and your price target could be up here at around $73.00. Now, that is only 3 percent but it does look like it wants to go higher and again, breaking weekly resistance is bullish for the long-term outlook of this stock.
Another oil and gas company that I want to look at is Viper ( NASDAQ: VNOM ). Full disclosure, I did take a position in Viper ( NASDAQ: VNOM ) today. my price is 25.69. It is just a small position right now because I want to see Viper ( NASDAQ: VNOM ) push above this resistance level. Again, just like Exxon Mobil ( NYSE: XOM ) the stock has been consolidating right around the 50-day moving average.
So if this stock breaks out tomorrow or the next day or whenever you can have a stop just below the 50-day moving average. That is giving you just about 5 percent risk; because it is 5 percent you will probably want to start with a small position. I would look for a swing to the upside and resistance right around this daily 200-period simple moving average. That level is right around 12 percent higher; my target for this trade is 10 percent. Despite that this stock has a $36.00 price target, if we move up 10 percent I will say, “Thank you market. May I have another?”
So there are two oil and gas stocks to consider.
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