Exxon Mobil (NYSE: XOM)

Market Sentiment: Bearish

Exxon Mobil (NYSE: XOM) shares are falling as crude oil futures are retreating following yesterday's rally as the dollar is regaining some value

XOM share is ranging from $80 and $95 in past one year. At the end of yesterday, stock has hit a high at $88.46 and low at 86.79.

Even though overall chart looks ranging, but most recent trend looks bearish. The reasons are:

• Downward pitch fork has formed. Middle pitch fork is putting consistent resistance as and when price hit it.
• Price has broken the major blue trend line.
• Now price could come down below 84 which is the lower pitch fork level, which could act as minor support if down volume remains high.

So, in this scenario, we could go for July bear-call credit spread above $95 range. We could make 9.3% return in one month as long as it stays below $95 at July expiration. This trade could be risky if oil spike higher.

DISCLOSURE: This is just for your education purpose. We are not responsible for any of your losses. Please do at your own risk.