Downtrend in Devon Energy?Devon Energy has been sliding for more than two years, and now some traders may expect another downward thrust.
The first pattern on today’s chart is the price area between $38.29 and $40.54. It was the range after the last earnings report on November 5. DVN mostly held the zone through early December before sliding to a four-year low. It’s now rebounded and could be pausing at the same spot. Has old support become new resistance? (It also roughly matches monthly lows from September and October.)
Second, the 50-day simple moving average (SMA) has been under the 100-day SMA. Both are under the 200-day SMA. That’s potentially consistent with a longer-term downtrend in the oil-and-gas producer.
Third, stochastics have reached an overbought condition.
Finally, energy stocks have outperformed lately. Much of the strength resulted from moves by former President Biden. However incoming President Trump seems more focused on lower prices, which could pressure the sector again.
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