Exxon Is the One Oil Stock to Own Now
Bloomberg News
Exxon Mobil (XOM) - Get Report continues to be the gift that keeps on giving to investors. Whether it's pumping oil or providing the gas you pump, the company makes money. It even pays a 3.20% annual dividend yield, which is more than a full percentage point above the average stock on the S&P 500I:GSPC index.
The stock is up more than 8% over the past three weeks and netting multiple all-time highs during that span. Even back on June 20, when shares were at a 52-week high, they were worth buying. Oil prices no long seem to matter to this company.
Exxon shares trade around $94. The stock has risen 20.4% year to date, compared with 5.9% year-to-date rise in the S&P 500 index and a 12.91% year-to-date rise Energy Select Sector SPDR (ETF) (XLE) - Get Report . Where's the stock heading next? Take a look at the chart, courtesy of TradingView.
From the chart, you can see XOM has begun to pullback after testing resistance at around $95 per share (red line). The stock has pulled back almost 2% since making a 52-week/all-time high at $95.55 on July 15. This pullback has now placed XOM less than 1% above its 20-day moving average at $93.27 (blue line), but firmly above the 50-day (pink line) and 100-day (yellow line) levels.
Plus, unlike some of the riskier stocks, it didn't matter that we missed the top above $95. The trade scenario continues to work. As long as the stock is firmly above $93, as outlined on June 20, the resistance level to look for is $98.50, which is still 5% above current levels.
Despite the pullback from $95.55, the June 20 trade has returned 3.45%. Combined with its 3.20% yield and consistent buyback, the uptrend towards $98 to $100 is still in play.
This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.