Exxon Mobil (NYSE: XOM) Clings to Support Says Market Timer Frank Kollar

August 1, 2008 (FinancialWire) (By Frank Kollar)

Shares of Exxon Mobil Cp (NYSE: XOM) closed lower on Thursday, July 31 after a quarterly report missed analyst’s estimates. Net earnings of $11.68 billion or $2.22 a share was not enough for Wall Street which was looking for $2.46 a share.

But XOM’s chart has much to say to traders who are looking for direction in coming weeks.

XOM is just a fraction above critical 61.8% support, at $79.02, that reflects prices going back to March of 2007. This is a long term support level that if broken would lead to declines testing those 2007 lows, all the way down at $70.0 a share.

But as long as support holds, XOM could make a low risk long trade. Closing on Thursday at $80.43, with the bad news already factored in, XOM should see higher highs over coming weeks. A sell stop just below support keeps the risk very low.

Should XOM make a decisive close below support, a short trade using support as a buy stop would be a higher risk trade, though potentially a profitable one, for aggressive traders

Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.

Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.

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