Devon Energy Slips 1.08% Amid Bearish Technical Signals Below Key Moving Averages

Devon Energy (DVN) declined 1.08% in the latest session to close at $32.94, with shares oscillating between $32.86 and $33.46 on moderate volume. This movement occurs within a broader technical context characterized by several key observations.
Candlestick Theory
Recent candlestick patterns indicate consolidation between $32.30–$33.63, with resistance near $33.63 (tested repeatedly on July 18, 23, and 24) and support at $32.30 (July 21 low). The July 25 session formed a bearish closing candle near the day's low after failure to hold gains above $33.30, suggesting persistent selling pressure at resistance. A confirmed break below $32.30 would expose the $31.45–$31.75 support zone established in mid-July.
Moving Average Theory
The stock trades below all key moving averages, with the 50-day MA hovering near $33.50 and the 200-day MA near $36.20. The sustained downward slope of the 50-day MA below the 100-day and 200-day MAs reinforces a bearish intermediate trend. A bullish reversal would require clearance above the 50-day MA, but current price action shows no convincing momentum for such a breakout.
MACD & KDJ Indicators
MACD metrics display a bearish crossover below the signal line, aligning with recent downside momentum. KDJ oscillators (calculated using standard 9-period settings) show the %K line at 38 and %D at 42, retreating from overbought territory (>80) observed in early July but not yet reaching oversold levels (<20). This suggests room for further downside before reaching exhaustion. The lack of bullish divergence in either oscillator underscores the current bearish bias.
Bollinger Bands
Bollinger Bands (20-day, 2σ) have contracted to their narrowest width since June, indicating diminished volatility and potential energy accumulation for a directional move. Price currently hugs the middle band ($33.20), showing no conviction to challenge the upper band ($34.10). A close below the lower band ($32.30) could signal accelerating bearish momentum, while a band expansion would confirm breakout direction.
Volume-Price Relationship
Recent volume patterns lack conviction: the July 24 rally to resistance occurred on elevated volume (9.73M shares) but closed near mid-range, suggesting distribution. The subsequent 1.08% decline on July 25 transpired on 41% lower volume (5.66M shares), indicating absence of panic selling. This divergence implies sellers remain in control but lack aggressive momentum. Sustained bearish pressure would require confirmation via higher-volume breakdowns.
Relative Strength Index (RSI)
The 14-day RSI reads 45, in neutral territory after dipping from 62 on July 8. This reflects waning upside momentum but avoids oversold conditions (<30) that might indicate a reversal opportunity. RSI’s failure to breach 70 during July’s rally to $33.63 signals underlying weakness. Traders should note RSI divergence would only materialize if price establishes new lows while RSI forms higher lows.
Fibonacci Retracement
Using the April 2025 trough ($26.80) and the July 2024 peak ($47.03), key Fibonacci levels place resistance at the 38.2% retracement ($34.53). Recent rejections near $33.63 suggest confluence with this technical barrier. Support resides at the 23.6% level ($31.57), which aligns with July’s swing low ($31.45). The stock’s position between these levels ($31.57–$34.53) reflects consolidation within a broader recovery attempt, with a break below $31.57 risking retreat toward the $30.26–$30.30 support zone.
Concluding Synthesis
Confluence exists around the $33.60–$34.50 resistance zone, reinforced by the 38.2% Fibonacci level, declining moving averages, and bearish MACD crossover. The absence of oversold signals in RSI and KDJ, coupled with low breakout conviction in volume metrics, suggests limited upside potential near-term. A breakdown below $32.30 support would likely accelerate bearish momentum toward $31.45–$31.57, while a volume-backed clearance above $33.63 is needed to invalidate the bearish structure. Given Bollinger Band contraction and Fibonacci resistance alignment, the technical posture favors caution with downward bias.