Exxon Mobil (XOM) has traced a three-wave move down from a prior peak, described as an Elliott Wave Double Three, and demand emerged at a W-X Equal Legs area. On the one-hour chart dated 26.08.2026, the stock was said to be correcting the cycle that began from the 149.08 low, with the pullback viewed as unfinished and implying further near-term weakness before any subsequent rally. The Equal Legs zone, measured via Fibonacci Extension, was placed at 158.11–154.14, with expectations for a three-wave bounce from that region.
By 31.08.2026, price action showed a rebound from the Equal Legs zone, and the pullback was marked complete at 155.46. The advance off that level was characterised as impulsive and labelled wave ((i)) within a new bullish sequence. The 155.46 low was presented as the key invalidation point; holding above it leaves scope for another leg higher, with a stated upside objective in the 171.6+ area.
Technical Outlook and Trade Positioning
We are closely tracking Exxon Mobil Corporation (XOM) as it establishes a strong bullish reversal after hitting a low of $155.46 on August 31, 2026. This rebound from our designated buying zone of $158.11–$154.14 signals that buyers have firmly regained control. Derivative traders should now look to position themselves for an upward move targeting the $171.60+ range in the coming weeks.
Supporting Fundamentals and Risk Management
To support this bullish outlook, we can look at Exxon’s solid fundamentals, including its recent integration of Pioneer Natural Resources which has pushed its Permian Basin production to record levels of over 1.2 million barrels of oil equivalent per day. Furthermore, historically, the energy sector often experiences increased demand and price strength as we head into the autumn shoulder season. Derivative traders can leverage this momentum by utilizing bull call spreads or outright long call options, keeping the critical invalidation level strictly at $155.46.
For those managing risk, any long positions established near the $155.46 bottom should already be set to break-even to protect capital. If the stock maintains its position above this key support level, we expect the impulsive wave pattern to accelerate toward our target. This technical setup, combined with global oil supply tightness and steady capital returns—including Exxon’s ongoing $20 billion annual share buyback program—provides a highly favorable risk-to-reward ratio for option buyers.
