Exxon Mobil Corporation, #XOM [NYSE]
Commodities Oil & Gas, USA

Financial performance of the company:
Index – DJIA, S&P 500;
Beta – 0.85;
Capitalization – 339.36 В;
Return on asset – 4.70%;
Income - 16.15 B;
Average volume – 18.48 М;  
P/E - 21.17;
ATR – 2.19.

Analytical review:

  • The company ranks the first on capitalization in the sector of “Commodities” among the issuers traded in the American stock market;
  • At the end of April the company issued report for Q1 of the fiscal year 2016, which showed that company’s revenue has decreased to 48.71 billion USD from 67.62 billion USD. In the reporting period net profit of Exxon Mobil fell to $0.43 per share against $1.17 per share for the same period a year ago. However, company’s results exceeded market expectations, as the forecast of revenue was at the level of 8.14 billion USD and EPS (earning per share) of 0.31 USD;
  • At the press-conference company’s management said that results of the company exceeded market expectations because of the significant expenses cut. Oil company reduced capital investments by 33% to 5.1 billion USD, in order to survive in the period of crisis in the oil production sector;
  • In the reporting period Exxon Mobil has invested 5 billion USD of free funds for restructuring its business. The company also allocated 3.1 billion USD for paying dividends and repurchase of shares;
  • Institutional funds owns 50% of the company’s shares. The largest part of shares belongs to Vanguard Group (6.44%) and State Street Corporation (4.50%).

Summary:

  • Despite significant decline in revenue and net profit, company’s results exceeded market expectations. Positive dynamics in oil prices supports the rise of the issuer. Successful implementation of the restructuring plan will help increase the financial performance of the company. Most parts of the Exxon Mobil’s shares belong to Institutional funds.
  • It is likely that in the near future company’s quotes will go up.

Trading tips for CFD of Exxon Mobil Corporation

Key levels:
Support levels: 88.80 USD and 87.30 USD.
Resistance levels: 90.00 USD.

Medium-term trading, Н1 
Since the beginning of April, company’s shares have grown only 8%. At the moment the issuer is traded between support and resistance levels of 88.80/90.00 USD. After breaking out and testing of the upper limit (90.00 USD) of the trading range and in case of the respective confirmation (such as pattern Price Action), we recommend to open long positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 92.00 USD, 93.50 USD and 95.50 USD with the use of trailing stop.

Среднесрочная торговля, Н1
Medium-term trading, Н1

Short-term trading, М15
Currently the issuer is traded between the local support and resistance levels of 89.40/90.30 USD. It is advisable to enter the market after breaking out and testing of these levels. Positions can be opened towards the signal line and the nearest support/resistance levels. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly above/below the signal line. Take profit can be placed in parts of 50%, 30% and 20% with the use of trailing stop.

Short-term trading, М15
Short-term trading, М15




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