Wednesday, February 20, 2008

Bullish Chart Setup: DVN

Independent oil and gas stocks have been on fire since bottoming late January (that long tail provided a good entry point), and few have done better than DVN (Devon Energy Corp). I like the stock on a pullback to what looks like new support at $95. The stock exhibits a nice accumulation pattern and could make another move higher.

1 comment:

Paper said...

Do you have as much success using charts to trade stocks like this, where the price of the stock is largely determined based on the price of the commodity? The stuff that affects the price of oil, like weather, politics, etc., is so diverse that it would seem to not lend itself well to the same kind of technical analysis that one uses for stocks based solely on business and market moves. It feels like holding into earnings every time you trade!