The analysis looks at the 1-hour Elliott Wave Charts for Exxon Mobil Corporation (XOM). The rally that started on November 25, 2025, formed an impulse pattern. We expected further gains and advised members to buy during dips in the highlighted blue box areas, aiming for a sequence of higher highs. The chart from January 8, 2026, shows that the cycle from the November 25, 2025 low finished at a wave 1 high of $128.57. After that, a pullback occurred in wave 2, identified as an Elliott wave zigzag correction. Wave ((a)) hit a low of $122.39, wave ((b)) peaked at $126.20, and wave ((c)) reached the blue box, ranging from $120.01 to $116.18. This range was seen as a potential buying opportunity for future gains or at least a rebound.

Positive Reaction In Stock

The chart from January 21, 2026, highlights a positive response, with the stock rising after completing the correction in the blue box area. This allowed members to maintain a risk-free position from their entries in the blue box. XOM hit new highs, expected to reach the $132.34 to $141.28 range before profit-taking and another pullback. Recent price movement indicates that Exxon Mobil’s pullback from its early January high is now complete. The stock found strong support right in our blue box area between $120.01 and $116.18. This bounce, followed by new highs, confirms that the uptrend from late November 2025 is resuming. This technical strength is backed by positive market conditions for the energy sector. Last week’s EIA report showed a surprise drop in crude oil inventory of over 3 million barrels, much larger than expected. This pushed WTI crude prices to a six-month high above $95 per barrel. We believe this strong fundamental backdrop will continue to drive the stock’s upward trend in the near future.

Opportunities For Derivative Traders

For derivative traders, this creates a clear opportunity to position for a move toward our next target zone of $132.34 to $141.28. Buying call options that expire in February or March 2026 with strike prices around $130 or $135 provides a direct way to benefit from the expected rise. The increasing upward momentum suggests that implied volatility may increase, making this a good moment to enter such positions. For more conservative traders, selling out-of-the-money put options could be an option. Selling February puts with a strike price near the recent support level, such as $120, allows traders to earn premium, expecting the stock to stay above this key technical level. This strategy aligns with our view that the recent dip was a buying opportunity. The current wave structure resembles patterns seen in the latter half of 2024, where a similar pullback was followed by a sharp rally exceeding 15% in the next month. With the recent bounce confirmed, traders who went long in the blue box should have moved their stops to their entry points. We will now focus on managing the position as it approaches the upper targets. Create your live VT Markets account and start trading now.

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