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Fueling A Bearish Trade On Exxon Mobil Corporation

Sep. 03, 2014 10:28 AM ETXOM
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After topping out in late July, Exxon Mobil Corporation (NYSE:XOM), one of the biggest companies in the world by market cap has been unable to move higher, even as the S&P 500 makes new all time highs. This should be worrisome, not only for the overall stock market but the economy as well.

Exxon Mobil Corporation (NYSE:XOM) is one of the biggest petrochemicals manufacturer. The price action in Exxon Mobil Corporation (NYSE:XOM) over the last couple of weeks is yet another sign of a major global slow down taking place.

As you can see in the chart below, highlighted by the grey rectangle, Exxon Mobil Corporation (NYSE:XOM) has been moving sideways for a number of weeks now, unable to stage any kind of significant move up. This pattern is extremely bearish, and at the right time, with the correct set up, will offer traders an opportunity to make money shorting this weak equity.

Exxon Mobil Corporation (NYSE:XOM), will have support along the way, however, the ultimate target for this bearish set up is around the $88.00 level.

Kiliam L.

InTheMoneyStocks.com

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