Buy the Dip on This Blue-Chip Oil Stock

Exxon Mobil Corp (NYSE:XOM) stock has been sliding since its late-November peak, which failed to extend its Oct. 7 record high of $126.36. The oil giant could soon push back toward those highs, however, as the recent downturn has it running into support on the charts. The shares have begun to consolidate at $113 -- last seen at $113.60 -- which provided a floor for pullbacks through July and August.

The 260-day moving average now lingers just below as well. Per Schaeffer's Senior Quantitative Analyst Rocky White, it's run into this trendline six times in the last three years. For the purpose of this study, White defines that as the equity trading above the moving average 80% of the time over the past two months and closing north of the trendline in eight of the last 10 sessions before coming within striking distance of it. XOM finished higher one month later after 83% of these signals, averaging a gain of 9%. From its current perch, a similar move would put Exxon Mobil stock just above $123, which is a chip-shot away from its record. 

It's also worth noting that the stock's 14-day relative strength index (RSI) of 29.5 sits in "oversold" territory, which typically precedes a short-term rally.