Devon Energy Expecting Resistance Soon?

Published on Tuesday, 31 August 2010 06:04 Written by Danny Miller

New York, August 31st (TradersHuddle.com) - Shares of Devon Energy Corporation (NYSE:DVN) closed the trading session at $60.47 near its 50 day moving average currently set at $63.17. Devon's price action is below this important level, which makes the stock difficult to buy, as there will certainly be resistance as it approaches its 50 day.

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.

Latest price action range, defined by a peaks and troughs algorithm places calculated support at $59.07 and calculated resistance at $66.21. These levels will be closely watched by traders, as they provide great insight into the latest price dynamics defined by Devon Energy shares.

Traders should evaluate their trade if they want to establish a position on Devon Energy given the resistance expected as the stock approaches the 50 day moving average. A trade might materialize as the stock manages to break this important level, as it could be used as support going forward, however until the break materializes buying the stock is nothing different than flipping a coin. Other levels that traders will be evaluating are the ones defined by the peak and troughs algorithm that provides great price level reference points.