Exxon Mobile reported earnings this morning, and according to Morningstar the company’s second-quarter earnings fell 57% amid weaker refining margins and volume and as the year- earlier period included a net asset-sale gain of $7.5 billion. Exxon Mobil reported a profit of $6.86 billion, or $1.55 a share, down from $15.91 billion, or $3.41 a share, a year earlier. Revenue decreased 16% to $106.5 billion.
From a technical perspective, even though the stock price today is under some pressure (as it’s been down almost 2% intra-day) the uptrend still remains intact. The chart above is a weekly chart showing price action in the stock, going back to 2010. I believe as long as the stock price can remain above that trend line it is not time to jump ship just yet. Although from a fundamental perspective it probably makes sense to be cautious.
Taking a closer look using the daily chart, we can see today’s drop has indeed found support at the midpoint of the most current trading range that coincides with a previous open gap or settlement price. We should have a lot of support here and into the $90 level. As long as we remain on the positive side of that trend line I see no reason why this stock price can not eventually hit a target price of around $99-$100.