DVN dominated by bulls lifting the market higher throughout the day
Devon Energy Corporation (DVN) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
DVN finished the month -7.5% lower at 10.49 after gaining $0.15 (1.45%) today, outperforming the S&P 500 (0.77%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (DVN as at Jul 31, 2020):
Friday's trading range has been $0.39 (3.81%), that's below the last trading month's daily average range of $0.55. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DVN. Prices continued to consolidate within a tight trading range between 10.13 and 10.85 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Prices are trading close to the key technical resistance level at 10.62 (R1). After having been unable to move lower than 10.16 in the prior session, the market found buyers again around the same price level today at 10.13. The last time this happened on Wednesday, DVN actually lost -4.61% on the following trading day.
The stock shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying might accelerate should prices move above the nearby swing high at 10.85 where further buy stops could get activated. As prices are trading close to July's low at 9.61, downside momentum might speed up should the share mark new lows for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for Devon Energy. Out of 81 times, DVN closed higher 53.09% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 58.02% with an average market move of 1.27%.