Dow components Exxon Mobil Corp. (XOM) and Chevron Corp. (CVX) have risen sharply from downtrend lows in recent months, reacting to a crude oil bounce that’s lifted the WTI futures contract above 40 for the first time since April 2015. Those upticks have made significant progress, with higher prices in coming weeks confirming new uptrends.
These mega-caps hold the third and twelfth slots in Dow market capitalization and, given billions of publicly traded shares, are held in more institutional portfolios than any other energy securities. They’ve also been less volatile than the majority of the energy universe in the last two years because their downstream operations have been highly profitable, despite the crude oil collapse.
A recent downturn in the US Dollar (USD) should underpin 2016 profits at these multinational giants and offer buying opportunities to interested market players. Given their current positioning, which offers the best buy from a technical standpoint and at what prices should potential shareholders start to accumulate shares for long-term positions?
Source: Investopedia