3 Charts For Investors to Watch Wednesday: SentinelOne, ExxonMobil, VIXY ETF

Here's our daily look at three charts linked to news-driven price moves on Tuesday, with key technical levels to monitor. 

SentinelOne, Inc.

Shares in cybersecurity software maker SentinelOne (S) gained 3.6% Tuesday after announcing a joint cybersecurity program with information security solutions provider SecureWorks Corp. (SCWX). The two firms will join forces to leverage their cyber expertise, streamline risk management, and improve threat intelligence and technology. Earlier this year year, SecureWorks integrated one of SentinelOne’s flagship solutions into its platform to increase cybersecurity visibility for its customers.

SentinelOne shares have continued to gain momentum after gapping above the top trendline of a 12-month trading range. The move higher has also coincided with relatively heavier volume compared to recent months, suggesting potential participation from institutional investors. Key levels worth watching include the initial breakout point for possible retests of the previous trading range, and an area of key resistance around the psychological $30 level.

ExxonMobil Corporation

Multinational oil and gas giant ExxonMobil (XOM) slumped 1.6% Tuesday to register a fresh 52-week low, following a steep decline in energy prices. Oil retreated to its lowest level in six months, weighed down by oversupply concerns and an unexpected rise in consumer prices that could potentially reduce interest rate cuts next year. Meanwhile, Henry Hub Natural Gas futures closed nearly 5% lower amid worries over milder-than-expected weather and increasing supplies. In the last month alone, contract prices have tumbled 25%.

Although XOM shares plumbed a fresh 2023 low in Tuesday’s trading session, the price may find support at current levels from the lower trendline of a 20-point trading range. However, it’s worth noting that a recent death cross signal in late October may foreshadow lower prices and confirm a triple top chart pattern. In the days ahead, it’s worth keeping an eye on how the price reacts to the trading range’s lower trendline for clues about future price direction.

ProShares VIX Short-Term Futures ETF

The ProShares VIX Short-Term Futures ETF (VIXY), a fund that tracks the CBOE Volatility Index by holding front month futures contracts, eased 2.8% Tuesday as the underlying benchmark reached its lowest level since January 2020 amid an extended period of low volatility in equity markets.

Despite the potential for market gyrations arising from today’s Federal Reserve’s policy announcement, analysts see volatility remaining in check from $5 trillion in stock options expiring Friday. This is because options dealers, who act as intermediaries between buyers and sellers, manage risk by taking the opposing side of the trade, meaning they sell stock futures when equities rise and buy when markets fall, effectively keeping stock prices within a confined range.

Apart from several minor retracements, the fund’s share price has remained entrenched within a downtrend throughout 2023. If sudden spikes of volatility return to equity markets, investors should monitor any countertrend rallies into the long-term downtrend line that roughly aligns with the falling 50-day moving average. This area would likely present an area of significant chart resistance before any sustained rally.

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As of the date this article was written, the author does not own any of the above securities.