In early March, Exxon Mobil has announced an "investment plan" of $ 185 billion over the next five years to develop new energy bids in order to meet the strong demand growth. This represents capital expenditure of about $ 37 million a year.
From a fundamental viewpoint, Exxon is trading at a moderate level compared with competitors. Its enterprise value/revenue ratio is estimated at 0.8x for 2012 and the PER is 10.3x for the same period. According to Thomson Reuters consensus, the average target price is $93.9 which represents a potential of 13% compared to the current price.
Since early january, stock is within a trading range USD 83.5 / 87.5 and is characterized by low volatility. Besides, the share has several times broke through the lower bound of this range. The proximity of 100-days moving average could bolster up the share to the resistance.
Thus, it would be advisable for investors to buy the share next to the support of USD 83.5 in order to aim at USD 87.5. If the security drops below USD 81.5, this strategy will be cancelled.