New York, September 27th (TradersHuddle.com) - Devon Energy Corporation (NYSE:DVN) ended the trading session at $59.00, near its 50 day moving average set at $59.32. Devon's price action placed the stock below this important level, which makes it difficult to be bought, as the stock will certainly face resistance as it approaches its 50 day moving average.
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.
The latest price action range, defined by a peaks and troughs algorithm, placed calculated support at $60.01 and resistance at $63.95. These levels will be closely monitored, as they provide great insight into the latest price dynamics.
If traders want to establish a position in Devon Energy, given the resistance expected as the stock approaches its 50 day moving average, a trade might materialize as the stock manages to break this important technical level. After the breakout, the 50 day moving average could be used as support going forward. However, until the break materializes, buying the stock is basically a gamble with 50-50 chance.