Last week, on July 23, we wrote about a triple top scenario in Exxon Mobil (XOM). This update is for those who took interest in the first piece.
At the time, the target at [2] had already been reached. But as I mentioned in the July 23 piece, “The initial breakout level at [3] might make for another good entry downward (assuming that it actually reverses), after which the original target at [2] or the next level of support at around the 74.85 range [4] or critical support at 70.65 shown at [5] might make for good secondary and tertiary targets.”
As of today, the secondary target [4] had been hit, and we see something of a doji forming, indicating a balance between buying and selling pressure.
Having the patience to see a classic pattern play out to completion can be rewarding. Given multiple price targets, certain trade setups like this one also allow for a swing trader to spread one’s profit objectives across different price points, and to take advantage of the space allowing one to trail stops or place a stop at a breakeven level.
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