ExxonMobil (XOM) – one of our favorite oil companies – just aced its latest stress test.
Like most every stock, XOM shares were punished during the historic "stress test" of 2008. Shares fell from the $90 level to the mid-$60s in just five months. After a brief rally, shares traded back down to that low point in March 2009 and rebounded nicely. This level is important. It marks the lowest price XOM reached during the worst general selling pressure we've seen in decades.
In early February, we bullishly noted shares were near their historic stress test level. On cue, shares bounced back into the high $60s.
Finding the stress test level is the sort of common-sense "technical analysis" we prefer at DailyWealth. No complicated cycles or geometric shapes to memorize. Just an obvious price where value-focused investors step in to buy shares in one of the world's best companies.
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