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Exxon Mobil (XOM): Breakout in Motion with Energy Sector Support

 

Exxon Mobil (XOM): Breakout in Motion with Energy Sector Support 

Exxon Mobil (XOM) has cleared the key $115 resistance, confirming a breakout supported by rising energy sector momentum (XLE). The move sets up a path toward $125, offering an attractive trade setup with defined risk at $111.56.

Price Action: XOM closed at $117.22 (+1.41%), breaking through the resistance at $115 that capped rallies in June and September. The breakout is backed by stronger volume (~18.6M), lending conviction.

Sector Tailwind: The Energy Select Sector SPDR (XLE) has pierced its descending trendline, pointing to sector rotation back into energy. Relative strength vs the S&P 500 is also turning upward, improving leadership signals.

Momentum Indicators: RS is trending higher but nees to cross above zero to reduce chance of a false break.

Trade Setup

  • Entry Zone: On breakout confirmation above $115 or on a pullback retest toward $115–116.

  • Target: $123–125.

  • Stop Loss: $111.56.

  • Risk/Reward: ~1:2.5, making the setup favorable for both swing traders and position investors.


Disclaimers apply

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