Stock Picks: V-Shape Turning Around

December 9, 2020, 9:47 am EST

V-Shape Turning Around

 As we mentioned yesterday about Market Leaders – Energy, let’s take a closer look at one of the oil giant Exxon Mobil (XOM) as example. 

  • XOM free fall from about 70 in January 2020 to about 30 in March 2020
  • COVID-19 pandemic terminates most of business activities was the main reason to cause energy to drop
  • Although XOM recovered from 30 to 50 from March to June, the second and third wave of COVID-19 hit XOM again back to basement 30 until the end of October. Straight down regression described this downtrend clearly. 
  • Series vaccines gave hope so XOM began to rebound sharply as V-shape in November
  • Another gap-up from 32-35 confirmed the bottom rebound because XOM never looking back since then
  • XOM could climb up to 50 where previous high sets resistance
  • Depending on effectiveness of vaccines, COVID-19 cases, economic recovery, XOM may cross higher than 50 or blocked by 50
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