Exxon Mobil Corp.

After repeatedly flirting with the strong support at $68.30, XOM leapt higher on Wednesday to as high
as $71.55. Following up the jump, Thursday saw another climb higher towards $71.66 before being
pushed back towards $71.48. Now, XOM is within striking distance of the previous peak at $71.90.
Whether the current leg is the wave B or another fresh impulse wave is going to be seen soon.

Technical indicators are supportive towards another leg up as the three EMAs continue to slope
upwards while MACD, despite still underwater, has been approaching the positive area.

Anyone familiar with the Elliott Wave structure could see that the rally from $58.05 was in a 5-wave
structure. It points at the indication that currently XOM is in a corrective mode, or wave 4. This
assumption will be negated should XOM breaches the peak at $71.90, signaling that the corrective
phase is over. Be warned, though, because if the current wave is wave 4, then the first leg down towards

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$68.30 might have been wave A, or the first leg of wave 4. Thus, the current rise risks a throw-over wave
B, which means that the peak at $71.90 could be exceeded but the price bounds for the final dip in the
form of wave C before completely ending the complicated (if it’s complicated) wave 4.

Although it is a tricky situation to observe XOM from the wave principle, I prefer to assume that the
current leg is bound to surpass $71.90 and that the stock will approach the first resistance at $72.66
before extending its move higher to the extent of $76.03 (see the resistances listed below).

SUPPORTS LAST RESISTANCES

12/2/2010

68.30 69.09 69.98 70.38 70.87 71.48 71.90 72.66 73.05 75.35 76.03

In case of a dip, the support levels listed above are ideally okay for initiating or adding BUY positions.

Statistics

XOM scorecard
Week 1 Week 2 Week 3 Week 4

↑ 5.28% ↑ 1.41% ↓ 0.63% ↓ 1.86%

November YTD 12-Mos Dec MTD

↑ 4.62% ↑ 2.01% ↓ 7.34% ↑ 2.76%

The strategy
With the odds for another leg up pretty promising, initiating a BUY position is preferred. Either wait for a
breach of $71.90, or directly initiate an entry or rather, wait for a corrective dip (if there’s any) around
the designated support levels. A good start would be at $70.87. Beware that should XOM falls below
$68.30; this could mean we’re not done yet with wave 4.

Disclaimer: This report is provided for information purposes only. It is not an offer to sell or to buy any
securities. This report has been prepared based on sources believed to be reliable, but there is no
assurance or guarantee regarding its completeness & and accuracy. The author accepts no responsibility
or liability arising from any use of the report.

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