Devon Energy's (DVN.US) stock price has been on a downward trend since mid-April 2024. However, looking at the D1 chart from a technical perspective, a shift to an upward trend is possible. Last week, the price managed to break through key resistance in the $34.5 area. This level resulted from the upper limit of a broad 1:1 geometry. According to the Overbalance methodology, breaking through the aforementioned resistance at $34.5 signals a change in trend or a larger rebound after several months of declines. Earlier, the price also managed to break through the trend line drawn along the recent peaks, which also points to a northward movement. The upward scenario is also supported by the fact that the price has been above the exponential average of the last 100 periods for some time. If the assumed scenario materializes, the price should first test the resistance at $38.75, resulting from the recent local highs in January and February this year. On the other hand, if the price returns below $34.5, a decline towards $31.8, where the previous local lows are located, cannot be ruled out.
DVN.US D1 interval. Source: xStation5
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