The recent pull-back in the shares of DVN have brought the price back down to its most frequent price where it has traded for more than 20 days at the 57 level. Today reached down and the buyers for DVN shares apparently were there. The price lifted and closed above support.
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 ETF) 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
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 ETF) 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
Subscribe to my indicator package KEY HIDDEN LEVELS $10/mo or $100/year and join me in the trading room KEY HIDDEN LEVELS here at TradingView.com