Is it possible that Exxon Mobil Corp. (NYSE: XOM) is trying to find a bottom? The question may seem rhetorical, or even a stab in the dark, on the surface. On a day when crude oil fell more than 2% and went under $44.00 per barrel, what do you make of it when Exxon Mobil shares are up 1%?
The first thing to consider is how much Exxon has fallen. Not just over recent weeks and days, but from the peak. The second thing to consider is that when oil and gas investors have determined that oil prices have actually bottomed, then you likely will have seen a rally in shares of Exxon Mobil three or maybe even six months before oil began to recover.
If investors go back to recent Exxon Mobil share trading on February 25, that was the last time the shares were above $89.00 U.S. That was also the last day the stock rallied, with the exception of last Thursday. The reality is that Exxon Mobil shares were down 10 straight trading days before a 20-cent per share price rally.
Shortly after Wednesday's open, Exxon shares were down 37 cents, or 0.4% to $83.71 U.S., in a 52-week trading range of $82.68 to $104.76 U.S. The stock has a consensus analyst price target of $93.20 U.S implying upside of roughly 10% from the current price level.
