3 Big Stock Charts for Wednesday: Exxon Mobil Corporation (XOM), Boeing Co (BA) and Monsanto Company (MON)

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U.S. equities mostly moved lower on Tuesday as investors look ahead to Friday’s critical nonfarm payrolls report and what it will mean for the odds of a possible June interest rate hike from the Federal Reserve.

stock market todayTrading remains very technical, with the Dow Jones Industrial Average sandwiched between support near its 50-day moving average and massive three-year overhead resistance near the 18,000 level.

The situation is looking vulnerable as the economy all but demands the Federal Reserve hike rates again in a few weeks — something that’s sure to deliver another shock, as it did back in December, to liquidity-addicted markets. Keep an eye on the U.S. dollar, which is likely to surge on confirmation another rate hike is coming — putting everything from commodities to crude oil and emerging market currencies at risk.

For further clues as to where stocks are headed, watch these three charts.

Exxon Mobil Corporation (XOM)

xomchart_060116Exxon Mobil Corporation (XOM) stock has closed near its 20-day moving average for the first time since early April on Tuesday as crude oil comes under pressure.

Oil lost 0.7% to close at $48.99 a barrel on Tuesday after UAE’s oil minister said he was happy with the state of the market, kicking off what’s likely to be a surge of comments on energy heading into Thursday’s meeting of the OPEC oil cartel.

I’ve recommended the June $89 XOM puts to Edge Pro subscribers on the expectation a hawkish Fed will bolster the dollar while a lack of any production cuts from OPEC will combine to weaken oil prices and energy stocks after a long rally out of the February 11 low.

Boeing Co (BA)

BAchart060116Boeing Co (BA) shares have been under pressure for the last three months, recently falling below both the 50-day and 200-day moving averages as evidence of warning profitability due to industry overcapacity weighs on airline earnings. BA shares were unable to push back above the 50-day average last week, and are now at risk of collapsing below post-March support.

I have recommended the June $130 puts to Edge Pro subscribers, who are enjoying a 30% gain so far.

Monsanto Company (MON)

MONchart_060116Monsanto Company (MON) shares gained 2.7% on Tuesday on ongoing M&A speculation after Bayer AG (ADR) (BAYRY) made an offer for the ag-chemical giant last week. The latest is that Bayer could increase its offer for the company to $135 per share from the rejected $122 per share offer.

Jefferies analysts said last week that a $130-plus offer was “highly likely” while Bayer issued a statement saying it remains “confident” in completing a deal.

The company will next report results on June 29 before the bell. Analysts are looking for earnings of $2.42 per share on revenues of $4.5 billion.

Anthony Mirhaydari is founder of the Edge and Edge Pro investment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/06/3-big-stock-charts-wednesday-exxon-mobil-xom-boeing-co-ba-monsanto-company-mon/.

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