It has certainly been a challenging year for ExxonMobil. The company incurred its first annual loss in at least two decades. Higher oil prices have boosted the stock this year, but is the worst for the oil giant over? Let's take a closer look at the company's operations and plans to see what investors should expect in the long run.
ExxonMobil took a hit on all fronts last year. Lower oil and gas prices and reduced production affected the company's upstream operations. At the same time, lower refining margins and demand had a negative impact on the downstream business. Also, based on an assessment of changed market conditions, the company decided not to develop a significant portion of its dry gas assets, resulting in a significant impairment loss of nearly $17 billion in the fourth quarter. The decision also addressed the need to cut capital spending to focus only on its most profitable assets.
Our Analysis:
While the price is above 53.30, follow the recommendations below:
- Time frame: D1
- Recommendation: long position
- Entry point: 57.19
- Take Profit 1: 62.00
- Take Profit 2: 64.00
Alternative scenario:
If the level 53.30 is broken-down, follow the recommendations below:
- Time frame: D1
- Recommendation: short position
- Entry point: 53.30
- Take Profit 1: 50.10
- Take Profit 2: 48.10
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