Devon Energy Drops 2.88% To 33.77 Amid Bearish Technical Signals

Devon Energy (DVN) has exhibited significant downside momentum, declining 2.88% to close at $33.77 on September 15, 2025, marking its third consecutive daily loss for a cumulative 4.93% decline. This bearish price action warrants comprehensive technical assessment using the specified framework.
Candlestick Theory
Recent candlesticks demonstrate deterioration in structure. The September 15 session formed a short-bodied candle with minimal upper wick closing near the low ($33.77 vs. intraday low $33.725), confirming selling pressure after a failed recovery attempt. This follows a bearish sequence of lower highs and lower lows from September 11-15. Key resistance now establishes at $34.60–$34.80, the recent consolidation zone. Critical support emerges at $33.00–$33.25, corresponding to the June swing lows.
Moving Average Theory
DVN trades below all major moving averages in a bearish configuration. The 50-day MA (est. $34.15) crossed below the 100-day MA (est. $34.40) in late August, reinforcing intermediate-term weakness. More significantly, the 50-day recently crossed under the 200-day MA (est. $34.80), forming a "death cross" that historically signals extended bearish phases. This alignment creates dynamic resistance near $34.15–$34.40, where selling pressure has repeatedly emerged.
MACD & KDJ Indicators
The MACD (12-26-9) resides in negative territory with the signal line maintaining a bearish upper position, suggesting sustained downward momentum. However, the KDJ oscillator presents a counter-narrative: J-line has plunged below 10 while K-line (est. 15) and D-line (est. 22) approach oversold extremes. This divergence implies latent recovery potential despite prevailing downtrend. The KD bearish crossover on September 11 preceded the latest decline, demonstrating the indicator’s efficacy in signaling immediate-term weakness.
Bollinger Bands
Heightened volatility is evident as bands widen during the September 10–15 sell-off, expanding the standard deviation to 2.0% (vs. 1.3% August average). The price closed below the lower band on September 15 – an occurrence preceding only 5% of sessions in the past year. This oversold signal coincides with near-term support at $33.25. Traders should monitor band contraction for technical stabilization cues.
Volume-Price Relationship
Volume confirmation validates bearish momentum. The September 15 decline occurred on 9.1 million shares – 28% above the 30-day average – indicating conviction behind the move. Down days have consistently shown volume expansion since early September, with the September 12–15 sequence registering 15% above-average volume. This distribution pattern suggests institutional participation in the sell-off, weakening the likelihood of swift recovery.
Relative Strength Index (RSI)
The 14-day RSI (estimated at 28) has breached the oversold threshold (<30) for the first time since May 2025. Historically, such RSI levels preceded minor rebounds in DVN (e.g., May 30 low with RSI=29 catalyzed 15% rally). However, current positioning should be interpreted cautiously as RSI can remain oversold during strong downtrends. Confluence with the $33.25 support strengthens its significance as a potential pivot area.
Fibonacci Retracement
Applying Fibonacci to the $25.89 (April 9 low) to $34.92 (July 8 high) advance yields critical levels: 23.6% ($32.79), 38.2% ($31.47), and 50% ($30.40). The recent decline stalled near the 23.6% level ($33.77 vs. $32.79), establishing its relevance as immediate support. A breach below $32.79 would signal vulnerability toward $31.47–$31.60, an area coinciding with the 200-week moving average and early April swing highs.
Confluence and Divergence
Confluence appears at $32.79–$33.25, where the 23.6% Fibonacci level, monthly support, and Bollinger Band projection align. This zone exhibits multiple reversal triggers including oversold RSI, KDJ extremes, and historical buy interest. The primary divergence occurs between momentum (bearish MACD) and oscillators (oversold KDJ/RSI), suggesting potential counter-trend relief despite dominant bearish structure.
Probabilistic Outlook
The technical landscape reflects dominant bearish momentum but with rising probabilities of short-term stabilization. Traders should expect resistance near the moving average cluster at $34.15–$34.40. Sustained trade above $33.25 may trigger technical covering toward this zone. However, bearish resumption remains the baseline scenario below $34.40, with targets at $32.79 and $31.47 if key support folds. Volume patterns and MACD configuration warrant skepticism toward durable recoveries until decisive closes reclaim $34.60 resistance.