DVN pushes through key technical resistance level
Devon Energy Corporation (DVN) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, DVN finished Wednesday at 9.76 surging $0.53 (5.74%), strongly outperforming the S&P 500 (-0.46%). This is the biggest single-day gain in over a month. The last time we've seen such an unusually strong single-day gain on August 5th, DVN actually lost -2.24% on the following trading day.
Daily Candlestick Chart (DVN as at Sep 16, 2020):
Wednesday's trading range has been $0.71 (7.55%), that's far above the last trading month's daily average range of $0.43. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DVN.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 9.74 (now S1), which is likely to act as support going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Its common bearish interpretation has been confirmed for Devon Energy. Out of 267 times, DVN closed lower 51.31% 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 five trading days, showing a win rate of 50.56% with an average market move of 0.07%.