Case for Exxon Mobil

The current Trump administration is already making significant moves that could be a major boost for ExxonMobil (XOM) and the broader energy sector. With a renewed focus on American energy dominance, Trump’s policies are rolling back restrictive regulations, cutting bureaucratic red tape, and fast-tracking drilling permits, making it easier for Exxon to expand its operations.

Chart Analysis

While XOM has been topsy-turvy over the past year, the price action is showing some signs of momentum in recent weeks. Critically the stock was able cross back above the $108 price level, which could act as a stepping stone for the days and weeks ahead.

Upside Potential

Trade policies favoring domestic manufacturing and energy exports are also working in Exxon’s favor, allowing the company to expand its liquefied natural gas and crude oil sales globally. Additionally, Trump's foreign policy prioritizes energy independence and reducing reliance on OPEC, creating a favorable landscape for Exxon to strengthen its global position.

Risk Factors

A major concern is the volatility of oil prices, which remain highly sensitive to global demand fluctuations, geopolitical events, and potential OPEC+ production cuts.

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