Devon Energy Corp. (DVN) has been a bright spot in our recommendations and we recommended the long side back on July 7, 2021.
Let's check on the charts and indicators ahead of the release of earnings figures after the close of trading Tuesday.
In this daily bar chart of DVN, below, we can see a large bullish or ascending triangle pattern over the past five months. Prices are approximately two-thirds of the way through the pattern or to the apex and this is when prices typically make their breakout. DVN is trading above the rising 50-day moving average line and above the rising 200-day moving average line.
The On-Balance-Volume (OBV) line has been bottoming the past four months. The Moving Average Convergence Divergence (MACD) oscillator is bullish.
In the weekly Japanese candlestick chart of DVN, below, we see a bullish setup. Prices are in a longer-term uptrend and trade above the rising 40-week moving average line.
The OBV line shows a long rise and is not far from making its own new high. The MACD oscillator has crossed to the upside for a fresh outright buy signal.
In this daily Point and Figure chart of DVN, below, we can see an upside price target in the $110 area.
In this weekly Point and Figure chart of DVN, below, we can see a price target of $98.
Bottom-line strategy: I have no special knowledge of what DVN will be telling shareholders this quarter but the charts are currently bullish. Traders who are long DVN from lower levels should continue to hold but raise sell stops to $69. The $98 area is our nearest price target now.
