Like many energy names, Exxon Mobil (XOM) hasn't done much since April, but the stock has been fighting back in recent weeks and it could be getting ready to make new highs. First, let's recognize how significant Exxon Mobil is — despite the S & P 500 being dominated by huge growth names. XOM has a $510 billion market cap, which makes it the 16th biggest company in the index.
It's also the only energy name within the index's top 25 holdings. Chevron currently is No. 26 with a market cap of $283 billion.
In other words, XOM is nearly double the size of the index's next biggest energy component. XOM is within 7% of its 52-week high of $123.75 from April 12, which also is its all-time high.
Of course, we care most about the stock's chart prospects. Admittedly, the daily chart isn't overly appealing right now. The stock has remained close to its just-mentioned highs, but it has been unable to capitalize on any rally attempt over the last few months.
This has been frustrating for traders who have anticipated a better outcome. However, that same volatile trading range since April has become part of a much larger potential bullish pattern — which is best seen on this weekly chart. In fact, if we frame the price action from the spring of 2023 to now, we get a large potential bullish inverse head-and-shoulders formation.
To be clear, this formation is not completed yet; a breakout through the neckline near $123-$124 would need to occur first. If that happens, it will trigger the $.