Shares of Exxon Mobil (XOM) - Get Report were lower yesterday for the fifth time over the last six sessions. This steady decline has attracted very heavy volume while taking out layers of very solid support in the near term.

The downside momentum now in place has inflicted major damage to the stock. In the near term, more downside is likely on the way.

Click here to see the below chart in a new window.

Tuesday's news-inspired 1.5% drop put Exxon at the top of the Dow Jones Industrial Average decliners list. Up until this breakdown, the stock was trading rather heavy but remained within a very important support area. Exxon has now blown through the lower band of this zone, which ran from $85.00 to $83.50, and is well below its flat-lining 200-day moving average. Layers of overhead supply are now in place, which will continue to add pressure in the near term. It's very unlikely that Exxon will be able to mount a significant rally until a deeply oversold condition is met.

In the near term, Exxon investors should expect more downside. Any light-volume rally will likely be turned away as the stock returns to the $85 area. On the downside, there is very little support in place until the $80 area is reached. This key level is marked by the January high. Exxon found support near this area back in late February and early March just as a fresh bull leg was gaining traction. A base here, along with an oversold moving average convergence/divergence indicator, could provide a very low-risk entry opoortunity for patient investors. Until then, Exxon should be considered a sell on strength.

This article is commentary by an independent contributor. At the time of publication, the author was long XOM.