Quantcast

DVN Crosses Critical Technical Indicator


Shutterstock photo

In trading on Thursday, shares of Devon Energy Corp. (Symbol: DVN) entered into oversold territory, changing hands as low as $35.87 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.

In the case of Devon Energy Corp., the RSI reading has hit 29.9 - by comparison, the universe of energy stocks covered by Energy Stock Channel currently has an average RSI of 43.5, the RSI of WTI Crude Oil is at 44.6, the RSI of Henry Hub Natural Gas is presently 60.7, and the 3-2-1 Crack Spread RSI is 28.6. A bullish investor could look at DVN's 29.9 reading as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.

Looking at a chart of one year performance (below), DVN's low point in its 52 week range is $29.825 per share, with $46.5425 as the 52 week high point - that compares with a last trade of $36.41. Devon Energy Corp. shares are currently trading down about 2.4% on the day.

Devon Energy Corp. 1 Year Performance Chart

Click here to find out which 9 other oversold energy stocks you need to know about »

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Commodities
Referenced Symbols: DVN



More from BNK Invest

Subscribe






BNK Invest
Contributor:

BNK Invest

Market News, Investing










Research Brokers before you trade

Want to trade FX?