The analysis examines the 1-hour Elliott Wave Charts of Exxon Mobil Corporation (XOM). The rally from 25 November 2025 unfolded in an impulse structure with an expectation for further upside extensions. Members were advised to buy dips in specified blue box areas, preferring a strategy aligned with a higher high sequence.
The chart from 1.08.2026 indicates that the cycle from the 25 November 2025 low completed at a wave 1 high of $128.57. A pullback occurred in wave 2, identified as an Elliott wave zigzag correction. Wave ((a)) concluded at a low of $122.39, wave ((b)) peaked at $126.20, and wave ((c)) reached the blue box, within $120.01 to $116.18. This area was considered a potential buying opportunity for future gains or at least a three-wave bounce.
Positive Reaction In Stock
The 1.21.2026 chart shows a positive reaction with the stock rising after completing the correction in the blue box area. This allowed members to hold a risk-free position after entering at the blue box. XOM reached new highs, confirming a moved to the $132.34 to $141.28 area before expected profit-taking and another pullback.
Based on the recent price action, we see that the corrective pullback in Exxon Mobil from its early January high is complete. The stock found strong support right in our designated blue box area between $120.01 and $116.18. This bounce and subsequent move to new highs confirms that the primary uptrend, which began in late November 2025, is resuming.
This technical strength is reinforced by favorable market conditions for the energy sector. Last week’s EIA report showed a surprise crude oil inventory draw of over 3 million barrels, much larger than anticipated, pushing WTI crude prices to a six-month high above $95 per barrel. We believe this supportive fundamental backdrop will continue to fuel the stock’s upward momentum in the near term.
Opportunities For Derivative Traders
For derivative traders, this presents a clear opportunity to position for a move towards our next target zone of $132.34 to $141.28. Buying call options with February or March 2026 expiration dates and strike prices around $130 or $135 offers a direct way to profit from the expected rally. The increasing upward momentum suggests implied volatility may rise, making now a good time to enter such positions.
Traders with a more conservative risk appetite might consider selling out-of-the-money put options. Selling February puts with a strike price near the recent support level, such as $120, would allow traders to collect premium with the expectation that the stock will remain above this key technical floor. This strategy aligns with our view that the recent dip was a buying opportunity.
This current wave structure is reminiscent of the pattern we observed in the second half of 2024, when a similar corrective pullback was followed by a sharp and sustained rally of over 15% in the following month. Given the confirmed bounce, traders who entered long positions in the blue box area should have already moved their stops to their entry point. We will now look to manage the position as it approaches the upper targets.
