XOM is down 4.26% in reaction to its acquisition of XTO. The stock is trading down to its 200 day SMA and I like the idea of buying a position here. It is similar to XLU and SO in that I believe it is a good retirement account position. The stock is at $69.7 and even during the crash it only traded down to $60. It is hard to imagine it going below $60.
In the immediate term, the stock is likely to find support at the 200-day SMA especially because the stock is approaching an oversold state (RSI = 30). In a 0% interest rate environment, the 2.3% yield is attractive.
To protect against stop overruns (a big fish pounding the stock through the 200 day SMA causing another sell off), I’m using a generous 3x ATR (average true range) stop at about $65.5.