Not all of the big trades worth watching are bullish setups right now. Oil and gas supermajor Exxon Mobil (XOM) is a good example of another huge name that's been doing its best to drag the broad market lower since November -- and it looks likely to continue underperforming.
That's because XOM is currently trading in a wide downtrending channel. Granted, the downtrend in Exxon may be shallow, but it's no less real -- and with shares coming down off of resistance this week, it could have considerably lower to fall, especially if the commodities Exxon owns continue to flounder. For traders looking for a shorting opportunity in this stock, it makes sense to make a bet as shares are moving down off of resistance.
I'd recommend keeping a protective stop just above the top of the channel.To see this week's trades in action, check out this week's Must-See Charts portfolio on Stockpickr.-- Written by Jonas Elmerraji in Baltimore.
Twitter and become a fan on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
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
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV