Exxon Mobil Corporation (NYSE: XOM) recently unveiled its fourth-quarter results, revealing a mix of outcomes. Despite a slight dip in adjusted earnings per share to $2.48 compared to the previous period’s $3.40, the figure surpassed expectations set at $2.21. Meanwhile, revenue witnessed a decline to $84.34 billion, marking an 11.6% decrease from the prior $95.43 billion and falling short of the projected $90.03 billion.
In the upstream business, production remained relatively stable, although adjusted earnings experienced a modest 6.3% decrease. This decline was attributed to the impact of lower natural gas prices, which experienced a significant tumble of 43% from the close of 2022 to the close of 2023. Similarly, crude oil futures witnessed a decline of 10.7% over the same period.
Despite these challenges, Exxon Mobil emphasized its commitment to shareholders by returning a substantial $32.4 billion in 2023, setting a benchmark within the industry. This impressive figure includes $14.9 billion allocated to dividends and $17.4 billion through stock repurchases, underscoring the company’s dedication to delivering value to its investors.
Technical
On the daily chart, a breakout occurred at the rising wedge, but the price failed to gain sustainable bullish traction. A demand zone near $101.69 currently provides support, backed by the 50-SMA (blue line) and the 25-SMA (green line), which could underpin a bullish advance.
If the price moves higher, the first hurdle is established at $104.88. The 100-SMA (orange line) offers additional resistance near this level and could create a challenging barrier to clear. However, if the price succeeds in moving higher, it could reach $107.01 and $108.20, the Fibonacci midpoint. If the market fails to initiate a retracement here, the 61.8% Fibonacci golden ratio at $111.12 could become a likely destination.
Conversely, another pullback is on the cards if the price fails to move higher from the current demand zone. The 50-SMA and 25-SMA support near $100.23 could create a challenge, potentially resulting in consolidation of the share price within a tight range. However, if the price moves below these support levels, the support at the bottom of the prior downtrend could become reachable at $98.05.
Summary
Exxon Mobil released a mixed quarterly earnings report, introducing an element of uncertainty into the share price, which has failed to gain directional traction in recent weeks. Resistance at $104.88 could be worth watching in the upcoming sessions to determine whether a bullish trend could be formed.
Sources: Koyfin, Tradingview, Reuters, Exxon Mobil Corporation
Piece written by Tiaan van Aswegen, Trive Financial Market Analyst
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