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Exxon Mobil And Chevron Corp May Tell the Tale (NYSE:XOM), (NYSE:CVX)

|Includes: CVX, Exxon Mobil Corporation (XOM)

When navigating through these markets one must watch the leading energy stocks. The two most important stocks that are major Dow Jones Industrial Average components are Exxon Mobil Corp (NYSE:XOM), and Chevron Corp (NYSE:CVX). These two stocks are not only top integrated energy companies worldwide, but, also top stock market barometers.

If one looks at a chart of Exxon Mobil (NYSE:XOM) they will see that the stock is trading below it's daily 50 and 200 simple moving averages. This is a bearish trend on the daily charts that must be watched closely. The stock is also 30 points below it's 2008 all time high at 95.00. Exxon Mobil Corp is still a great company, however, the stock is in a poor technical position at this time and could be signaling lower prices to come.

The chart of Chevron Corp (NYSE:CVX) is not much better than Exxon Mobile. This chart is trading on it's daily 200 moving average and lower than it's daily 50 moving average. This stock is also trading 30 points below it's 2008 all time high. Overall this is not a pretty picture on the charts for Chevron at this time.

When major stocks paint this type of a picture on the charts traders and investors must beware. These two stocks are major Dow Jones Industrial Average components. Therefore, if these stocks decline from here they are likely to drag the averages down with them. While they are very good companies they do not look like very good stocks at this time.

Nicholas Santiago
Chief Market Strategist