Our world and our economies are petroleum based. If you you disagree with that premise stop reading right now. If you agree with that premise then I think you can agree that if and when the world economies begin to grow again the world's largest petroleum producer, Exxon (XOM) should be one of the first and biggest beneficiaries of the economic recovery.
Barchart technical indicators:
- Remember, technical sell signals on high quality stocks can be an indicator of the time to buy at a discount
- 80% Barchart technical sell signal
- Trend Spotter sell signal
- Below its 20, 50 and 100 day moving average
- Down 19.66% from its 52 week high
- Trading around 70.55 which is a 12.16% from its 50 day moving average
- Relative Strength Index is 37.16% and falling
- Barchart computes a support level at 68.33
Summary: In an environment where you can't be sure which companies will stay in business and make a profit Exxon (XOM) is a company you can bet will stay in business and make a profit, the only question is just how much. If sales and earnings projections are met and the stock grows to a normal P/E ratio investors could see a 12% -14% annual total return over the next 5 years.
Jim Van Meerten is a Marketocracy Master
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