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
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/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":87,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[71],"tags":[],"class_list":["post-45101","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\n\t\t