Devon Energy Corporation explores for oil and natural gas, mainly in the Permian Basin and other US onshore fields.<\/p>\n
From March 2023, DVN moved lower inside a declining parallel channel. In February 2026 it broke above that channel, ending a multi-year downtrend.<\/p>\n
On Friday, the price pulled back to test the breakout. It retraced to the bottom of the post-breakout consolidation zone at $41.92, then pushed higher today.<\/p>\n
If momentum fades, the top of the broken channel at $40.36 is a key level to watch. Another support level sits near $38.00, marked by an upward-sloping trendline.<\/p>\n
On the upside, resistance is at $48.59. A daily close above $48.59 would bring the April 2024 high pivot at $51.99 into view, with further resistance at $58.81.<\/p>\n
Given the confirmed bounce, we see this as a signal to position for further upward movement in the coming weeks. The successful test of the $41.92 support level strengthens the case for buying near-term call options. The immediate goal is to see the stock clear the significant resistance at $48.59.<\/p>\n
This technical setup is supported by the broader energy market, as WTI crude futures have recently climbed back above $85 per barrel following last week’s EIA report showing a surprise crude inventory draw of 2.7 million barrels. This fundamental tailwind reinforces the bullish outlook for domestic producers. The price action reflects a market that is looking past the supply concerns that weighed on the sector through much of 2025.<\/p>\n
For a specific trade, we are looking at call options with strike prices just above the key resistance, such as the $50 strike expiring in June or July 2026. This provides enough time for the stock to challenge its April 2024 high of $51.99. A bull call spread, such as buying the $47.50 call and selling the $52.50 call, could also be used to define risk and lower the upfront cost.<\/p>\n
We must also define our risk on this trade by watching the technical structure closely. A daily close below the top of the old channel at $40.36 would signal that the breakout has failed. At that point, we would consider closing bullish positions or purchasing puts to hedge against a move down to the next support level at $38.00.<\/p>\n
Looking back, the stock’s grind downwards from its March 2023 levels created a long period of consolidation, which has kept implied volatility in check. A confirmed breakout past $48.59 would likely cause volatility to expand, making current option premiums appear relatively inexpensive. This suggests that now is an advantageous time to own options before a potential major move gets fully priced in.<\/p>\n","protected":false},"excerpt":{"rendered":"
Devon Energy broke its downtrend; pullback tested $41.92. Watch support $40.36\/$38, resistance $48.59 then $51.99.<\/p>\n","protected":false},"author":38,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[46],"tags":[],"class_list":["post-45433","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":[],"aioseo_notices":[],"featured_image_src":null,"featured_image_src_square":null,"author_info":{"display_name":"josephine","author_link":"https:\/\/www.vtmarketsglobal.com\/en\/author\/josephine\/"},"_links":{"self":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/45433","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/users\/38"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/comments?post=45433"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/45433\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/media?parent=45433"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/categories?post=45433"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/tags?post=45433"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}