Is the Oil Trade over? $XOM $EOG $CVX – April 7, 2022
XOM EOG CVX
This is Scott with your Chart of the Day. I want to take a look at 3 oil charts because I’m not so sure the oil trade is over just yet, maybe it is. I am hearing a lot of chatter about that, it’s peaked, it’s not going higher. Maybe that’s the case, but these stocks are still in some pretty good uptrends and so I think they are still, at least, worth having on a watch list.
We will start here with Exxon Mobil ( NYSE: XOM ). XOM ( NYSE: XOM ) is above all of the major moving averages, the 50-day, the 20-day, the 21-day, and the 8-day, and a pretty good pickup in volume today off of the low. We can also draw a little bit of a resistance line, resistance there, resistance there, we are right under resistance.
And so what has to happen for this stock to break out is, it’s got to get above and stay above that 85.45 level and ideally do it on volume. There are local resistance zones that we can look at, there, and of course, way up here. But even if it comes and retests the old high here, from here that’s a 7 percent move to the upside, so not a bad move for a swing trade.
Let’s take a look at EOG ( NYSE: EOG ), the same kind of story. It’s above all of the major moving averages, came down, couldn’t even get to the 50-day. We have a nice downward sloping trendline with clear resistance. So again, the same kind of story with this. I think you want to watch EOG ( NYSE: EOG ) above 122.60, watch for a strong move through there.
How about CVX ( NYSE: CVX )? A downward sloping trendline, no real volume pickup here today but again, it is still in a well-defined uptrend. So if the oil trade is over why are these stocks still in an uptrend? That’s what I want to know and that is why I think they’re worth keeping on a watch list.
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