Devon Energy Corp. (DVN) broke out to the upside in late October and earlier this month but prices quickly reversed gears and have given back those gains. DVN is testing the rising 50-day moving average line but a rebound does not look all that likely right now. Let's review the daily, weekly and Point and Figure charts to see what strategy looks best right now.
In this daily bar chart of DVN, below, we can see how prices closed right on the rising 50-day moving average line and are only a fraction above the still declining 200-day line. This price weakness is interesting as it comes when the chart shows a (belated) bullish cross of the 50-day and 200-day averages.
The daily On-Balance-Volume (OBV) line bottomed in June/August and rose with the price action until this month. The OBV line has not yet turned down with the price action, suggesting that buyers of DVN are still being more aggressive than sellers. The trend-following Moving Average Convergence Divergence (MACD) oscillator signaled a take profits sell signal earlier this month.
In this weekly chart of DVN, below, we can see that prices are just above the declining 4-week moving average line. The weekly OBV line looks like it may have peaked this month and the MACD oscillator on this timeframe looks like it is narrowing toward a bearish crossover around the zero line.
In this Point and Figure chart of DVN, below, we can see a bearish pattern and a possible downside price target of $34.15.
Bottom line: DVN might hold around $36 or the intersection of the 200-day moving average line but there could a deeper decline back to $34. If prices decline to $34 again a longer period of time will be needed for DVN to "rebase."