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Exxon Mobil (XOM) - Will Price Break Below Range?

Last time we looked at the share price of Exxon Mobil (XOM), we noted that it was approaching range resistance. However it did not reach the range resistance before retreating. Now it is about to test range support.

Exxon (XOM) Daily Chart

(click to enlarge)

Bearish Bias:
- We should first acknowledge the bearish bias even though price has been in a sideways range since February.
- First of all, price action was bearish entering the range.
- Secondly, price has remained under both 200- and 100-day simple moving averages (SMAs).
- Also note that the RSI has held under 60 after it tagged 30, which is a sign that the bearish momentum is still alive.
- Finally, the fact that price failed to reach the range resistance is a confirmation of bearish bias. 
Don't Rely on Support:
- Trading from range support is a viable trade idea in general.
- However, because of the above-mentioned bearish bias, we should not rely on the support, especially after a failed attempt to test the range resistance. 
- Furthermore, if price rebounds, pay attention to the middle of range around 82. If price holds under 82, it would be another sign that the market is shifting back to the prevailing bearish trend. 

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