5 Must-See Stock Charts for Wednesday: Oil’s Slippery Slope

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must-see stock charts - 5 Must-See Stock Charts for Wednesday: Oil’s Slippery Slope

Stocks were slightly lower after a volatile session on Tuesday, as investors search for direction. The discussion remains centered on oil and interest rates. Since we can’t speak for the Fed, let’s look at the former as part of our must-see stock charts.

Must-See Stock Charts #1: Oil ETF

must-see stock charts for USO oil
Click to Enlarge
Source: Chart courtesy of StockCharts.com

Above is an 18-month daily chart of the United States Oil Fund ETF (NYSEARCA:USO) and below is a five-year weekly look.

In both cases, investors can see where the stock broke below uptrend support, tested the underside of it and promptly failed. Bulls are hoping support comes into play in this $11.50 to $11.75 area, but a look at the long-term chart shows more concern.

Below the $12 to $13 range and USO has sliced right through its 200-week moving average. It also cut right though what many would have suspected as decent support, particularly given that oil is down for 12 straight sessions.

When will it bottom? The short answer is, I don’t know. Tuesday’s flush could be enough to put in a short-term capitulation, but we won’t know for another session or two. Those going long need to use caution, so they don’t get wiped out.

must-see stock charts for USO oil
Click to Enlarge
Source: Chart courtesy of StockCharts.com

Must-See Stock Charts #2: Exxon Mobil

must-see stock charts for XOM
Source: Chart courtesy of StockCharts.com
After a pretty darn good earnings report, Exxon Mobil (NYSE:XOM) finds itself caught up in a tough selloff thanks to oil prices. It’s got a solid dividend and balance sheet, but that may not be enough given this fall.

A few bucks cheaper and maybe investors will step in. Since May, $76 has been decent support, while long-term resistance is up at $86. In just a few sessions, XOM has cut through all three major moving averages and looks like it could be headed to the lower end of this range.

Long-term investors may consider nibbling some XOM near range support at $75.

Must-See Stock Charts #3: ConocoPhillips

must-see stock charts for COP stock
Source: Chart courtesy of StockCharts.com

Similar to XOM is ConocoPhillips (NYSE:COP), which is being hammered on the day. The stock is knifing right through multi-month support near $64 as well as uptrend support — although I wouldn’t put a ton of faith in the latter.

Still, the price action is poor and it’s clear COP is still searching for a bottom. When oil finds its footing, COP can too. Will that come into play near $60? That’s what I’m watching.

Must-See Stock Charts #4: Chevron

must-see stock charts for Chevron
Click to Enlarge
Source: Chart courtesy of StockCharts.com

After a strong earnings report propelled Chevron (NYSE:CVX) from $112 to $122, shares are the way back down.

Assuming CVX loses the 21-day moving average it could be heading back down to $112. Near that level it will fill its earnings-fueled gap. If it can’t find its footing between $110 to $112, CVX will likely head back to the $106 to $108 area.

Below that and it’s in no man’s land, but given its yield (~4%) and valuation (~12 times this year’s earnings) at that level, its downside should be limited.

Note: Could all this weakness in oil be part of what’s giving Tesla (NASDAQ:TSLA) a boost? Perhaps, with shares up 2.3% on the day.

Must-See Stock Charts #5: Facebook

Source: Chart courtesy of StockCharts.com

Let’s branch away from oil for our last one and look at the disastrous Facebook (NASDAQ:FB).

The stock market is going to have a hard time rallying if Apple (NASDAQ:AAPL) and FANG aren’t participating. That doesn’t mean Facebook has to rally too, but it sure would help.

Right now, the stock is still caught up in a brutal downward channel (blue lines). Until it can close over resistance and the 21-day moving average, more downside is likely to continue. The selling could accelerate if Facebook’s October lows don’t hold up as support.

Should Facebook begin to rally, let’s see how it does with the $150 level, a mark that held up well through the year before giving way last month.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long AAPL. 

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.


Article printed from InvestorPlace Media, https://investorplace.com/2018/11/5-must-see-stock-charts-for-cvx-xom-oil-uso-fb-cop/.

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