Devon Energy Corp (NYSE: DVN) Follow-up

September 25th, 2006

Last week, I posted a short term analysis of Devon Energy Corp (NYSE: DVN). Every time I do one of these short term analysis pieces, I’m going to follow up on them one week later. Especially if the analysis turned out to be incorrect, I’ll try to see if there was a reason, or if it was just bad luck. In the case of DVN, though, things went very well!

In my initial analysis, I said that a break of 65 looked like a shorting point, to me, at which time 60 and then 55 would be good-looking profit targets. I also said an upward break of 70 would look like a buy point to me.

Here’s an hourly chart of the last 10 days (the analysis was posted just before the Monday in the middle of the chart):

Picture 6.png

As you can see, on Tuesday we had our close below 65, our sell point. After that, DVN gave us a pretty steady down move for the rest of the week. This morning, as I write this, DVN sits at 59.48, a drop below 60 at which the chart says to take some profit. I’d get the rest of the way out on a firm move back above 60. Barring that, the next profit target is the 55 area.

Whew! I’m glad the first one went well… always good on the ‘ole psyche. They won’t all be this smooth, of course, but hopefully we will learn something together in any case. Til then…

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