DVN is a maybe for the scalpers, but a hard no for investors.
DVN is consistent if nothing else. Consistent losses for 10+ years. The Covid freeze-out saddled many developers and producers with enormous new debt, which will have long-term impacts on fundamentals. Their 2019 annual report was already poor when compared to prior years, but 2020 and Covid brought even more pain. Anyway in hourly or daily charts, you may see a short-term opportunity, but I think the current run-up is nearly out of steam anyway. Take the 4% upside if you can get it.
In this chart, we see the cyclical behavior of two companies with favorable 'Buy' outlooks from popular analysts. The cycles define epochs which have 16-month duration (+/- 2 months), and are demarcated by locating local minima in the weekly chart. In my opinion, I see no substantial remaining upside in DNV for the current epoch, although I am open to being wrong as usual. Although some unique market psychology is present in the ongoing recovery, investors are not re-inventing anything. Compare the current bullish upswing with the same textbook upswing in 2014 (green squares) Bollinger bands function here to illustrate impulsive price action pushing above the 2-sigma level of the rolling HV, leading to profit-taking and mean regression. Right now is simply too late to ride the current swing, in my opinion.
In this chart, we see the cyclical behavior of two companies with favorable 'Buy' outlooks from popular analysts. The cycles define epochs which have 16-month duration (+/- 2 months), and are demarcated by locating local minima in the weekly chart. In my opinion, I see no substantial remaining upside in DNV for the current epoch, although I am open to being wrong as usual. Although some unique market psychology is present in the ongoing recovery, investors are not re-inventing anything. Compare the current bullish upswing with the same textbook upswing in 2014 (green squares) Bollinger bands function here to illustrate impulsive price action pushing above the 2-sigma level of the rolling HV, leading to profit-taking and mean regression. Right now is simply too late to ride the current swing, in my opinion.
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