Exxon Mobil Corporation

XOM

entry:80.8

Stop:80

Target:87 or more

This is a counter trend trade, which means reward/risk is very good but low probability.

Xom is at a strong support level.

Oil is at a low price level. Could oil goes lower? yes. but if lower than $45 many drillers/producers loose money. -> reduce supply.

Jerry Brown suggest 42% gas tax hike and $65 registration increase in California. Many blue states already increase gas tax. AAA projects the national average for a gallon of gasoline to increase 40 cents this summer. -> reduce demand.

(Meanwhile the media tie gas / oil price to Saudi Arabia.)

What makes price move? Supply and Demand (translate into chart support & resistance)

Oil is at a strong support level (~45usd).

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