CVX, daily
XOM, daily
Summary
This is the first time (I think) I've highlighted either of these corporate monsters. Monsters, not for what they do, but for their shear size.
CVX has a market cap of roughly $200bn, with XOM valued around $400bn.
'Black Gold' indeed remains where the big money still is, and with the entire modern economy still based around this resource, CVX and XOM will doubtless be making profits for decades to come.
Death Crosses..due
We are seeing some distinct weakness in the energy sector. No doubt this is due to three key factors. First, the fiscal cliff concerns. Second, the weakening global economy. Third, the issue of WTIC Oil below $100.
Both CVX and XOM look set to see their 50 day MA break under the 200 day MA. This could occur as early as January if the market slips back under sp<1400.
Jan-March 2013 - Price targets
CVX is already close to taking out what is a large bear flag - from the November low. Once we see 106s, then 100 will be the preliminary target, and then the June low in the mid 90s.
XOM has already broken the bear flag, and is now just 2% from taking out the November low. First target will then be $80, and then the mid 70s.
So, XOM appears to be the leader right now, with CVX following closely behind.
--
Regardless of any of the myriad issues out there, both will likely be great buys 'if' the market reaches my bold target of the low sp'1200s in early 2013.
