Exxon Mobil Corp (XOM) is at a critical point right now, and could go either way over the next couple of days. The most important indicator in determining the direction of the stock price will be volume.

XOM could be forming either a Double Top Reversal Pattern, or an Ascending Triangle Continuation pattern. Volume is extremely important in both the Reversal or Continuation Pattern. So what could volume tell you?

If XOM is creating a Double Top Reversal Pattern, there is more-often-then-not a heavy sell-off after the second peak, and a break of the neckline. With an Ascending Triangle, there will most likely be a sell off, but it would be on light volume. Then, with the Ascending Triangle, it would break the resistance line on heavy upside volume.



Andy Swan is co-founder and head trader for DaytradeTeam.com. To get all of Andy's day trading, swing trading, and options trading alerts in real time, subscribe to a one-week, all-inclusive trial membership to DaytradeTeam by clicking here.