CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Exxon

Market Opportunities - 21/06/2022

21 June, 2022

The example below uses Contracts For Difference (CFDs). Calculations are only on the price of the specific instrument on the date below and calculations indicate a possible opportunity for profit or loss. No representation or warranty is given as to the accuracy or completeness of this information, consequently any person acting on it does so entirely at their own risk.

EXXONMOBIL (#EXXONMOBIL) weekly uptrend opportunity based On 1 Lot Calculation:

GLOBAL OIL & GAS INDUSTRY:

  • GLOBAL OIL MARKET SIZE AND GROWTH TO DATE. According to analysts, the global oil sector has grown from ~$3.0t to ~$6.8t between 2019 and March 2022. This represents a growth value of 66% over that time frame.

  • THE OIL MARKET IS EXPECTED TO GROW BY ~51% BY 2026. According to Analysts, the oil industry is expected to grow to ~$10.3t by 2026. This represents an ~11.1% compounded annual growth rate from the 2022 levels.

THE U.S OIL & GAS MARKET:

  • US OIL & GAS HAS SHOWN STRONG GROWTH: The U.S oil and gas sector has shown strong growth. The sector’s Market Cap grew from ~$875b to ~$2.1t between June 2020 - June 2022. This represents a total growth of ~140% and a compounded annual growth of ~55%.

  • SECTOR GROWTH TO CONTINUE: According to analysts, the oil and gas sector earnings are expected to grow. Growth is anticipated to be 11% annually over the next five years.

EXXONMOBIL:

  • THE COMPANY: ExxonMobil is the largest oil and gas company in the US by market capitalization, worth 362.7 billion dollars. ExxonMobil’s operations include exploration and production of oil, gas, electric power generation along with coal and mineral operations.

  • EXXONMOBIL DEMONSTRATES STRONG EARNINGS GROWTH: ExxonMobil has grown its net income from ~$14.34b in 2019 to ~$23.04b at year end 2021. This represents a 60% increase in Net Income. Revenue grew from ~$255b in 2019 to ~$276b in 2021. This represents an increase of ~8.2%.

  • EXXONMOBIL HOLDS SIGNIFICANT MARKET SHARE IN THE GLOBAL OIL AND GAS SECTOR: According to statistics, ExxonMobil is the third largest oil and gas company by revenue. The company holds 9.8% market share, with only Sinopec (14.04%) and PetroChina 13.6% holding a larger share.

  • EXXONMOBIL CONTINUES TO DOMINATE US OIL AND GAS: Exxon currently dominates the US oil and gas sector by market share. Exxon holds 29.9% of the market, while Chevron holds 17.2% and Marathon holds 13.2% respectively.

EVENTS AND ANALYSIS:

  • EXXONMOBIL STOCK TRADES IN POSITIVE CORRELATION WITH OIL: Since oil prices increased from $75 a barrel in December 2021 to price of above $100 today (~46% increase), ExxonMobil share price increased from ~$61 to a record high of $104.59 in June 2022 (~71% increase).

  • OIL PRICES STILL EXPECTED TO STAY ELEVATED: Goldman Sachs increased Q3 estimate to $140 a barrel, up from previous $125. Morgan Stanley Q3 estimate stands at $130. But their bull case forecasts $150. JPMorgan said oil prices can go to 175 and beyond by year end. Bank of America sees oil at $200 as the EU imposes an oil embargo on Russia. Barclays said prices in its worst case scenario could top $200 a barrel. Meanwhile, Russia ‘s oil minister Alexander Novak said that oil prices could hit $150 a barrel and more by the end of the year.

  • Q2 EARNINGS REPORT (EXPECTED JULY 29, 2022): ExxonMobil is set to report Q2 revenue and earnings on the 29th of July, 2022. Analysts estimate revenue will be $98.0b and EarningsPerShare is forecasted to print $3.03. ExxonMobil has beaten revenue estimates 5 out of the last 8 quarters. EarningsPerShare forecasts have beaten 6 out of the last 8 quarters.

  • STOCK PRICE ACTION: ExxonMobil stock price reached a record high of $104.59 in June 2022. Since then the stock price fell ~18%, trading at $85.84. If a full recovery follows, there could be a potential upside of 21.84%.

  • ANALYST OPINION: Goldman Sachs forecasts $117. Barclays forecasts $111. Credit Suisse recently upgraded their forecast from $115 to $125.

EXXONMOBIL(#EXXONMOBIL), June 21, 2022
Current Price: 91.00

Exxon

Weekly

Trend direction

UP

Resistance 3

125.00

Resistance 2

117.00

Resistance 1

105.00

Support 1

80.00

Support 2

70.00

Support 3

60.00

Example of calculation based on weekly trend direction for 1 Lot1

Exxon

Pivot Points

Resistance 3

Resistance 2

Resistance 1

Support 1

Support 2

Support 3

Profit or loss in $

34,000.00

26,000.00

14,000.00

-11,000.00

-21,000.00

-31,000.00

Profit or loss in €2

30,954.68

23,671.22

12,746.04

-10,014.75

-19,119.07

-28,223.38

Profit or loss in £2

25,754.65

19,694.73

10,604.86

-8,332.39

-15,907.28

-23,482.18

Profit or loss in C$2

42,687.68

32,643.52

17,577.28

-13,810.72

-26,365.92

-38,921.12

  1. 1.00 lot is equivalent of 1000 units

  2. Calculations for exchange rate used as of 10:35 (GMT+1) 21/06/2022

Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client Manager regarding their use.

  • You may wish to consider closing your position in profit, even if it is lower than suggested one

  • Trailing stop technique can protect the profit – Ask your Client Manager for more detail

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Risk Warning and Disclaimer

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Be Aware: You can lose all, but not more than the balance of your Trading Account. These products may not be suitable for all clients therefore ensure you understand the risks and seek independent advice. This material does not constitute an offer of, or solicitation for, a transaction in any financial instrument. Fortrade accepts no responsibility for any use that may be made of the information and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information, consequently any person acting on it does so entirely at their own risk. The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
When performing transactions in the OTC Forex market, the possibility of making a profit is inextricably linked with the risk of losses. Conducting transactions can lead to the loss of part or all of the initial investment. Before commencing operations, make sure you understand the risks involved and have sufficient skills to invest. The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
CFDs and margin FX are leveraged products that carry a high level of risk to your capital. You should only trade with money you can afford to lose. Be Aware: You can lose all, but not more than the balance of your Trading Account. You do not own, or have any rights to, the underlying assets. Past performance is no guarantee of future performance. This information is intended to be general in nature and is not financial product advice. Any advice contained on this website or provided to you by Fort Securities Australia Pty Ltd is general advice only and has been prepared without considering your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your objectives, financial situation and needs. We encourage you to obtain independent financial advice and consider our Financial Services Guide (FSG), Product Disclosure Statement (PDS) and Target Market Determination (TMD) to determine if this product is suitable for you before deciding to enter into or obtain any financial products issued by us. The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Be Aware: You can lose all, but not more than the balance of your Trading Account. These products may not be suitable for all clients therefore ensure you understand the risks and seek independent advice. You do not own, or have any interest in, the underlying assets. Fortrade Canada Limited is an Order Execution Only broker, and does not provide investment advice or recommendation. Fortrade is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and a member of the Canadian Investor Protection Fund (CIPF). Fortrade Canada Limited is authorised to provide CFD trading services in all provinces in Canada except Quebec. Residents of Alberta province are required to be Accredited Investors to trade CFDs.
CFDs are complex and highly speculative instruments, which come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing all your invested capital. Be Aware: You can lose all, but not more than the balance of your Trading Account. 77% of retail investor accounts lose money when trading CFDs with this provider. These products may not be suitable for all clients, therefore ensure, that you understand the risks and seek independent advice. Should you proceed with investment in CFDs on virtual currencies, please note, that the values are highly volatile and may result in a significant loss for a short period of time. This material does not constitute an offer of, or solicitation for, a transaction in any financial instrument. Fortrade accepts no responsibility for any use that may be made of the information and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information, consequently any person acting on it does so entirely at their own risk. The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Trading foreign exchange and/or Contracts for Differences (CFDs) on a margin carries a high level of risk, and may not be suitable for all investors. CFDs are complex products, which are highly speculative and very risky, and investing in such products may result is losing all or most of your invested capital.