In this article, we will take a look at three charts related to price movements driven by news on Tuesday, along with key technical levels to watch.
SentinelOne Company
Shares of cybersecurity software maker SentinelOne (S) rose 3.6% on Tuesday after announcing a joint cybersecurity partnership program with information security solutions company SecureWorks Corp. (SCWX). The two companies will collaborate to leverage their expertise in cybersecurity to streamline risk management, enhance threat intelligence, and technology. Earlier this year, SecureWorks integrated one of SentinelOne’s key solutions into its platform to enhance its clients’ cybersecurity visibility.
SentinelOne shares continued to rise after breaking above the upper line of the 12-month trading range. Prices also rose on relatively heavier volume compared to recent months, indicating potential participation from institutional investors. Key levels to watch include the initial breakout point for a potential retest of the former trading range, and the major resistance area around the $30 level.
ExxonMobil Company
Shares of oil and gas giant ExxonMobil (XOM) fell 1.6% on Tuesday, hitting a 2023 low, following a sharp decline in energy prices. Oil prices dropped to a six-month low amid concerns of oversupply and an unexpected rise in consumer prices that could reduce interest rate cuts next year. At the same time, Henry Hub natural gas contracts fell nearly 5% due to worries about warmer-than-expected weather and increased inventories. In just the past month, contract prices have dropped 25%.
Although ExxonMobil shares have dipped to a 2023 low during Tuesday’s trading session, prices may find support at current levels from the lower line of the trading range over 20 points. However, it is worth noting that the death cross signal at the end of October may foreshadow further price declines and confirm a triple-top pattern. In the coming days, it will be important to monitor how the price reacts with the lower line of the trading range for insights into future price direction.
ProShares VIX Short-Term Futures ETF
The ProShares VIX Short-Term Futures ETF (VIXY), which tracks the CBOE volatility index, fell 2.8% on Tuesday, as the underlying index hit its lowest level since January 2020 amid a prolonged period of low volatility in the stock markets.
Despite the potential for volatility in the markets resulting from today’s Federal Reserve policy announcement, analysts expect volatility to remain limited due to $5 trillion in stock options expiring on Friday. Options traders, who act as intermediaries between buyers and sellers, manage risks by taking the opposite side of the trade, meaning they sell stock contracts when stocks rise and buy when markets fall, keeping stock prices within a limited range.
Aside from some minor declines, the ProShares Short-Term VIX ETF price has continued to decline throughout 2023. If market volatility suddenly returns to the stock markets, investors should watch for any counter-trend spikes in price to the downward-sloping line that approximately aligns with the declining 50-day moving average. This area is likely to serve as a key resistance zone before any sustainable upward movement.
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