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