The question on everyone's mind: Will DEVON ENERGY CORP breakout?

Our stock screener has flagged DEVON ENERGY CORP (NYSE:DVN) as a potential breakout candidate. This occurs when the stock shows signs of consolidation after a notable upward trend. While we can't predict the actual breakout, it's worth monitoring NYSE:DVN for potential movement.

Technical Analysis Observations

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

We assign a technical rating of 8 out of 10 to DVN. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, DVN is only an average performer.

• Both the short term and long term trends are positive. This is a very positive sign.
• DVN is currently trading in the upper part of its 52 week range. The S&P500 Index is also trading in the upper part of its 52 week range, so DVN is performing more or less in line with the market.
• Looking at the yearly performance, DVN did better than 79% of all other stocks. However, this overall good ranking is mostly due to the recent strong move.
• DVN is an average performer in the Oil, Gas & Consumable Fuels industry, it outperforms 51% of 214 stocks in the same industry.
• In the last month DVN has a been trading in the 50.87 - 55.09 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

Our latest full technical report of DVN contains the most current technical analsysis.

How does the Setup look for NYSE:DVN

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NYSE:DVN currently holds a 9 as its setup rating, suggesting a particular level of consolidation in the stock.

Besides having an excellent technical rating, DVN also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 53.43. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 53.00, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for DVN in the last couple of days, which is a good sign.

Trading setups like NYSE:DVN

One strategy to consider is waiting for the actual breakout to occur, where the stock breaks out above the current consolidation zone. Traders can then enter a buy position, anticipating further upward momentum. As a risk management measure, it is advisable to set a stop loss order below the consolidation zone.

Please note that this article should not be construed as trading advice. The information provided is solely based on automated technical analysis and serves to highlight technical observations. It is important to conduct your own analysis and make trading decisions based on your own judgment and responsibility.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.