Chart of the Week: Devon Energy
Hey everyone. Happy Wednesday. It’s time for our chart of the week. And this week we’re gonna be focused in on energy/natural gas name Devon Energy. DVN is the symbol on this one.
Let’s take a look at this chart, it’s been pretty strong the past couple of months.
So a series of higher highs and higher lows since November. Of course, in October we put the bottom in at around $31-32. And the stock has taken off with oil and energy prices up sharply.
Let’s take a look at the move here from early January. It was about $34 up to where it is currently, about $46. That’s a nice move on Devon Energy.
And each time it pulls down, pulls right back to the 20 day moving average, which just seems to be an area where buyers seem to want to step in and start buying the stock. So on three or four different occasions, you see that happen here towards the end of February and early part of March.
Good volume trends in March, too. We can see strong volume bars as the stock had been moving higher in the month of March.
Williams % R is overbought right now.
We’re now on a buy signal crossover on the MACD, which came in a few days ago.
We know the stock is a little bit overbought right now. So what I suggest is this: Wait for a little bit of pullback to this trend line here. This trend line comes in at $45.08, maybe $44.95. Stock’s currently about $47. Maybe wait for it to pull back about $2-3, and then pull the trigger, jump right back in there, and add the stock.
It’s probably going to make a move like this, come back up here like this. Make a run in probably a few months, maybe up towards $50.
So take a look Devon Energy; DVN. Thanks so much for watching everyone.
