The base that DVN has been building since bottoming in June appears to be solid, but what I like most about this pattern is that DVN is so close to key support that it provides an excellent risk to reward trade. The upside, as I see it, is a rally above the current base-range around the 64-66 level.
DVN has lagged the XLE (Energy stock ) and you could short the XLE as a hedge against a long position in DVN . You could also short crude oil or one of its derivatives also.
To comment on the regression channel: I started it from the HIGHEST LOW and concluded it at the LOWEST HIGH.
Technical Tim 5:20PM EST, Tuesday September 4, 2012