DVN finds support at 20-day moving average
Devon Energy Corporation (DVN) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, DVN finished the week 1.59% higher at 12.14 after losing $0.15 (-1.22%) today, strongly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (DVN as at May 22, 2020):
Friday's trading range has been $0.45 (3.7%), that's far below the last trading month's daily average range of $0.82. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for DVN.
Two candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern and one neutral pattern, the Doji. The last time a Doji showed up on March 11th, DVN lost -13.56% on the following trading day.
After trading as low as 11.80 during the day, the market found support at the 20-day moving average at 11.95. Prices are trading close to the key technical resistance level at 12.30 (R1).
Devon Energy shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Southern Doji" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Devon Energy. Out of 55 times, DVN closed lower 54.55% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 50.91% with an average market move of -1.25%.