This Oil Stock could be bottoming. $DVN – January 3, 2024
This is Scott with your Chart of the Day. I want to take a look at Devon Energy ( NYSE: DVN ).
Devon ( NYSE: DVN ) was a major leader in 2021. If I zoom out here you can see it had a massive run for a lot of 2021. It spent most of last year chopping around and in consolidation. As we start this year we are, I think, putting in a bit of a bottoming formation here.
We can see clear support right around this $40.00 range, coinciding with some previous consolidation from back here in November of 2021. We had a big breakout above a potential backtest here. And today, as many of you know, oil and gas has been the only trade in town. A lot of everything is going down but energy is up today.
Devon ( NYSE: DVN ) is acting nicely above the 50-day moving average, that’s the red line here. If I zoom out again and draw a bit of a line from the highs over here from October of 2022, we can see it is just bumping up against a previous resistance zone; from here, here, here, and now we’re just underneath.
What I want to see from Devon ( NYSE: DVN ) is a potential breakthrough of that level. Maybe a bit of a backtest, just to make sure this move is real, and then a continuation higher. That’s the move I am looking for on Devon ( NYSE: DVN ). But first I would like to see it get above and stay above that $47.00 range, and break above this clear downward-sloping trendline, coming on higher than average volume.
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