Exxon Mobil is the focus of Serge Berger’s trading this Monday. It was reported over the weekend that it, along with its partner Rosneft, discovered oil at a controversial well in the Arctic.

The ‘Steady Trader’ thinks this oil giant could be ripe for a bounce, notably since the energy sector’s been the weakest in the S&P500 over the past few weeks. In fact, he suggests it’s looking increasingly oversold, being down around 7% since the beginning of September.

Serge says that Exxon Mobil stock bumped into its up-trend line, dating back to July 2010 and promptly bounced. Technically, the stock marginally undercut its lows from the prior day and quickly reject those lows. On the daily chart the stock left behind a so called ‘inside day’, which at this juncture should be considered a bullish formation.

These are Serge’s targets:

Buy at $95.40

Target: $99

Stop: $93.70