Exxon Mobil (XOM - Get Report) is another huge energy stock that's looking bearish right now -- albeit for different reasons. With correlations high within the energy sector, it's not hugely surprising to see multiple names that look negative at the same time. That said, Exxon's setup should be a little more worrying for investors if only because it doesn't need to see a breakdown for the sell signal to trigger - it's already happening.
Exxon Mobil is currently forming a downtrending channel, shallow though it may be. Only two things are needed to categorize a stock's price action as a downtrending channel: lower highs and lows. And XOM certainly has certainly met those criteria ever since its uptrend broke in late September. Even if the shallowness of the downtrend makes a severe breakdown unlikely, a slow sustained decline in share price is painful for returns -- particularly when the broad market is rallying.
Until XOM pushes through its trendline resistance level, I'd recommend staying away from this oil and gas supermajor.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts