timwest

DVN Devon Energy - Head & Shoulders Bottom Nearly Complete

NYSE:DVN   Devon Energy Corporation
1
There is a clearly visible HEAD & SHOULDERS BOTTOM pattern in Devon Energy Corp ( DVN , nyse). Note the classic signs of a bottom with price and volume patterns.
#1. The highest volume of selling is in the left shoulder, which is the longest time ago.
#2. Much less selling pressure in the head, again indicating a reduction in selling pressure.
#3. Right shoulder builds time on lower volume still. Note the extremely low volume in today's session.
I drew the head as a blue-circle to show you a concept to confirm a pattern known as the H&S . I believe it is important to find a big enough trend prior to the pattern to create a REVERSAL of trend. This is a reversal pattern.
Note the same pattern at the high this past winter-spring above $84 in DVN . I hope you found that pattern too.

By: Technical Tim, Nov 17, 2011 11:46PM EST

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