Shares of ExxonMobil Corp., an American oil company, are trading in a corrective trend near 118.00.

On the daily chart, the price is moving in an ascending channel of 123.00–116.00, approaching the resistance line.

On the four-hour chart, the growth potential prevails. After a consolidation above the high of last week at 120.00, the price may renew the year’s high of 125.00. To implement this scenario, the asset needs to stay above the resistance line of the channel at 123.00 since in the event of a reversal and decline, the range can work as a Flag pattern, strengthening the downward momentum.

Technical indicators maintain a buy signal: fast EMA on the Alligator indicator crossed the signal line upwards, and the AO histogram forms ascending bars above the transition level.

Trading tips

Long positions may be opened after the price rises and consolidates above 120.00, with the target at 126.00. Stop loss is 117.00. Implementation period: 7 days or more.

Short positions may be opened after the price falls and consolidates below 117.00, with the target at 111.00. Stop loss is 120.00.