Exxon Mobil (XOM) stock is hit today as oil and energy stocks tumble, following US President Joe Biden’s efforts to temporarily suspend gasoline taxes amid rising fuel costs fuel. XOM’s pullback is relatively muted, with shares last down 3% at $88.74. Additionally, this negative price action has brought the stock back close to a historically bullish trendline, suggesting that this dip may be short-lived.
Specifically, the stock was within one standard deviation of its 70-day moving average, according to research by Schaeffer’s senior quantitative analyst Rocky White. According to this data, XOM has seen five similar events over the past three years. A month after 60% of those cases, the stock was higher, with an average return of 4.1% over that period. A similar move from its current perch would place XOM just below the $93 level and closer to its June 8 high of $105.57.
The stock’s recent highs came on the heels of a bullish rating from Evercore ISI. Other brokerages could also follow its lead, as eight of the 15 people covered still rate Exxon Mobil shares as a “hold” or worse.
Options traders were also more bearish than usual. Although calls still outnumber puts on an aggregate basis on the International Securities Exchange (ISE), Cboe Options Exchange (CBOE) and NASDAQ OMX PHLX (PHLX), the volume ratio of 50-day put/call options is higher than all other readings. of the past year. In other words, long puts have been retaken at their fastest pace over this period.