Current trend

Shares of ExxonMobil Corp., an American oil company, are correcting in an upward trend at 117.00.

To prevent price growth, representatives of the Democratic Party introduced a bill that proposes to hold energy companies accountable in the event of their collusion with OPEC to increase oil prices. They will be prohibited from using federal lands and waters to extract resources. The initiative was prompted by the Federal Trade Commission (FTC) accusing Pioneer Natural Resources Co. CEO Scott Sheffield of exchanging messages with cartel officials to subsequently artificially inflate oil prices. As a result, the corporation was acquired by competitor ExxonMobil Corp. for 60.0B dollars, and the businessman himself was excluded from the company’s board of directors. Against ExxonMobil Corp., the FTC has no claims yet but the management has already expressed its readiness to provide all the necessary documents if they are required.

The Q2 financial report is due on August 2. According to forecasts, revenue will be 93.86B dollars, significantly higher than 82.91B dollars a year earlier, and earnings per share will be 2.04 dollars compared to 1.94 dollars.

Support and resistance

On the daily chart, the trading instrument is moving within an ascending channel with dynamic boundaries of 121.00–115.00.

Technical indicators strengthen the buy signal: the AO histogram forms correction bars, and the fast EMA on the Alligator indicator are above the signal line, maintaining a stable oscillation range.

Resistance levels: 118.70, 123.60.

Support levels: 116.00, 110.60.

Trading tips

Long positions may be opened after the price rises and consolidates above 118.70, with the target at 123.60. Stop loss is 116.00. Implementation period: 7 days or more.

Short positions may be opened after the price falls and consolidates below 116.00, with the target at 110.60 and stop loss 118.00.