Exxon Mobil (XOM) – Primed for a Breakout
Exxon Mobil (XOM) has been in a consolidation phase for several months, but it’s looking ready to reawaken. After a strong climb from $33 at the March 2020 Covid low to $117 in March 2023—a gain of 250%—the stock has been trading within a tight range. This range-bound behavior suggests the stock is “resting,” but if it breaks out, we could see it moving up to the $128 mark.
Exxon Mobil’s appeal extends beyond price action. Known for its stability, Exxon is a top defensive stock with a long history of delivering reliable income. The company has paid an annual dividend for 46 consecutive years, making it a go-to for income-focused investors. While it did maintain its dividend in 2020 without an increase, Exxon has otherwise raised its payout each year, reflecting a strong commitment to shareholders. Right now, XOM yields 3.39%, significantly above the S&P 500’s 1.29% average yield, making it an attractive income play.
In a market that values both income and defensive positioning, Exxon’s blend of reliability and potential upside creates a compelling case for buyers. Given the setup, we’re buyers here as Exxon stands poised to break out from its current range.
