Devon Energy near Key Resistance Area

Published on Friday, 30 December 2011 08:56 Written by Danny Miller

New York, December 30th (TradersHuddle.com) - Shares of Devon Energy Corporation (NYSE:DVN) are trading very close to calculated resistance at $63.42 with the current price action closing at just $62.29 placing the stock near levels that make it difficult to buy.

Devon Energy Corporation (NYSE:DVN) is an independent energy company that is involved primarily in oil and gas exploration, development and production, the transportation of oil, gas, and NGLs and the processing of natural gas.

Devon's current stock range is defined by current calculated support defined at $58.85 and by the resistance level at $63.42, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Devon Energy, as the stock is well above support, however, as the stock pulls back towards $58.85 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $63.42 then traders will get an opportunity to enter Devon Energy stock by establishing a position as the stock moves to a higher range.