Devon Energy (DVN) has made a good recovery this year, but it looks like its upside move is not over as the charts and indicators are still positive.
In this daily chart of DVN, above, we can see January prices followed by a successful retest in February. The retest gives us a place to put our sell stops (right below that low) and is followed by a rally and then a sideways to higher consolidation. Prices have moved up from that consolidation in what is likely to be a new up-leg. Prices are above the rising 50-day simple moving average line and above the 200-day average, which is still declining.
The On-Balance-Volume (OBV) line has moved up with the price action and confirms the strength as buyers of DVN have been aggressive with heavier volume on days when it has closed higher. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line in a bullish configuration.
In this three-year weekly chart of DVN, above, we can see that prices are above the 40-week moving average line. The slope of the line is starting to flatten. The OBV line on this timeframe is super strong and signals very strong buying and accumulation.
The MACD oscillator is above the zero line on this timeframe and rising -- another strong trend following signal.
DVN looks like it can rally into the $55-$60 area in the weeks ahead. Short term, I would look to buy a dip to $43 or $42, if available, to go long or add to existing longs.