Devon Energy Stock: DVN Stock price takes U-turn after earnings

• Devon Energy Stock shows signs of double bottom pattern formation.
• DVN Stock Price struggles to defend the 52 week low at $44.03.
• Devon Energy (NYSE: DVN) beat EPS as well as revenue estimates.

Devon Energy Stock price up by 3.54% in the current week and showing signs of double bottom pattern formation. It took support near yearly lows and showed minor recovery indicates buyers are returning back to track. 

DVN Stock (NYSE: DVN) price seems to be in downtrend and faces hurdle to break the trendline. The stock is trading below the 50 and 200 day EMA denoting positional trend is in downward direction. Any short up-move will face difficulty to sustain on higher levels. 

DVN stock price corrected a lot and fell by 15% approx on a YTD basis. Luckily, the quarterly earnings are positive which helps the stock prices to recover again. Devon Energy (NYSE: DVN) released quarterly earnings of May 8, 2023. 

It reported an EPS of $1.46 and Revenue of $3.823 Billion. Company beats the EPS estimates by 5.43% and revenue estimates by 17.10%. The stock prices reacted positively and tried to break out of the 50 day EMA to reverse the trend in favor of bulls. 

However, it got rejected and prices entered consolidation. Devon Energy Stock price closed the previous session at $49.20 with an intraday rise of 1.91%. The market capitalization at $31.57 Billion. Buyers are active and trying to regain the 50 day EMA to bring back the confidence of investors. 

Is Devon Energy Stock price bottom out?

Devon Energy Stock price has performed well in the month of march and rallied 28% approx from the 52 week low. The momentum halted near $56.00 and buyers failed to hold the higher levels. Later, profit booking triggers and prices again reverted in a downward direction. However, the buyers are active and attempting to bounce back. 

If DVN Stock breakout of $56.00 hurdle we may say that stock has bottom out and more upward momentum is possible. However, if the price faces rejection then it is expected to consolidate in a range between $44.00 to $56.00. 

On the other hand, if the situation turns worse and prices drop below $44.00, the next phase of downside momentum will begin.

DVN Stock is still in bear grip 

DVN Stock Price formed a bullish hammer candle in a weekly time frame and showed initial signs of trend reversal. The price will pick up momentum only after the $56.00 breakout. 

The technical analysis suggests, Devon Energy stock price is in bear grip. Until it breaks $56.00 any short term up-move will have low probability of sustaining the higher levels. 

The MACD curve is reversing upward and on the way to generate a positive crossover. It shows short term up-move is possible. The RSI at 46 sloping upward denotes the strength of bulls and prices likely to test the neutral territory. 

Conclusion

Devon Energy Stock price up by 3.54% in the current week and formed a double bottom pattern. The prices seem to be bottomed out but the confirmation will come when it breaks out of the $56.00 hurdle. 

The technical analysis suggests, Till price trades below $56.00, short term up-move will have low probability of sustaining the higher levels. 

Technical levels

Resistance levels: $56.00 and $66.00

Support levels: $44.00 and $40.00

Disclaimer

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