ExxonMobil (XOM) - Get Report is beginning to show signs of a bottom. Today the stock is up 1% as it extends the rebound off the March low to 3.5%. This week's rebound may be the initial rally leg off what could develop as a significant low. XOM investors should keep a close eye on the action in the near term.

In early December, XOM left an ominous spike in heavy supply near the area of $93.00. Later in the month it became clear a healthy pullback  was on the way. XOM collapsed as the new year began and by mid-February the stock had fallen more than 13%. Shortly after reaching the $81.00 area on Feb. 8 the downside momentum appeared to have run its course. XOM began to base a week later and has been constructing a bottom since then. A fresh rally leg off this support zone could carry the stock much higher.

In the near term, patient XOM investors should take on a more positive view of the stock. A very solid support zone is in place between the $82.50 area, which is marked by last week's high, and this week's low at $80.80. A key hurdle as a new rally phase gets underway is the March peak near $84.25. On the downside, a close back below $80.00 would violate the March low indicating a more drawn out basing pattern is on the way.

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Editor's pick: This article was originally published on March 30 at 2:36 p.m. ET

Long XOM