Devon Energy DVN returns to support _ Re-entry long here

Devon was written up favorably in an article in Barron's Magazine this past weekend. The stock jumped to 61.50 on the story but has since retraced those gains. Now the stock is back to support levels and with a bigger base of support just under current prices, the upside-downside situation looks acceptable.

Note on the chart how DVN formed a sequence of accumulation patterns where each apex point seems to be the base of the following correction and therefore a support level

Note also the down trending BLUE line that shows where sellers have been sitting on top of this stock for some time. Those sellers appear to be gone and now those former resistance levels also provide support on any pullbacks.

I like to buy groups that are oversold and turning up and with the steep correction in energy prices lately, I am willing to step back into this market, especially after we got out of this so well at the height of the last rally. Recall at that time oil prices were caving in and yet, oil stocks were still rallying.

Note that I put the P&L forecast off to the right so as not to infiltrate the chart with too many graphics.

Cheers.

Tim 1:27PM EST, Wednesday November 13, 2013