Devon Energy Jumps 6.85% On Bullish Technical Breakout With 16M Volume Surge

Devon Energy (DVN) surged 6.85% to $34.92 in the latest session, accompanied by significantly elevated volume of 16.16 million shares. This strong bullish momentum shift warrants a comprehensive technical assessment of the stock’s positioning.
Candlestick Theory
The price action culminated in a robust bullish candlestick on July 8, 2025, which fully eclipsed the preceding three sessions’ range and closed near the daily high of $35.19. This pattern resembles a bullish engulfing formation, signaling strong accumulation after testing the $32.13–$32.70 support zone on July 7. Immediate resistance is established at the yearly high of $35.60 (June 13), while the July 7 low of $32.13 provides critical near-term support.
Moving Average Theory
The 50-day and 200-day moving averages exhibit a bullish configuration, with the faster 50-day MA positioned above the slower 200-day MA throughout the dataset. As of July 8, the price reclaimed its 50-day MA after briefly dipping below it in early July. The 100-day MA near $33.50 now acts as dynamic support. The alignment suggests the primary trend remains constructive, though the 50-day MA’s recent flattening warrants monitoring for potential consolidation.
MACD & KDJ Indicators
MACD shows early signs of momentum recovery, with its histogram crossing above the signal line on July 8 after a period of bearish convergence. Concurrently, KDJ exited oversold territory (K:25/D:22 on July 7) with a sharp bullish crossover (K:68/D:46 on July 8). This dual momentum shift confirms strengthening buying pressure, though MACD remains below its centerline, indicating the nascent nature of the rebound.
Bollinger Bands
The July 8 breakout coincided with pronounced band expansion (+2σ Upper Band at $35.40) after a volatility contraction period in late June. Price closed just below the upper band, suggesting near-term equilibrium but confirming a volatility breakout. Bandwidth expansion supports continuation potential, with the 20-day moving average (mid-band) near $33.80 now serving as pullback support.
Volume-Price Relationship
The bullish reversal was validated by volume surge, with July 8’s trading volume (16.16M shares) doubling the 10-day average and representing the highest volume since June 23. This volume climax on an upswing signals institutional participation, contrasting with the distribution patterns observed during the June downtrend. Volume divergence on earlier minor rallies has now resolved bullishly.
Relative Strength Index (RSI)
RSI(14) rebounded sharply from near-oversold (35.6 on July 7) to neutral (58.2 on July 8), clearing the 50 midline that had capped recovery attempts since mid-June. While escaping oversold conditions, RSI remains below the overbought threshold (>70), suggesting room for additional upside before technical exhaustion.
Fibonacci Retracement
Applying Fib levels to the primary uptrend from the $25.89 low (April 9, 2025) to the $35.60 high (June 13, 2025):
- 38.2% retracement: $31.89 (July 7 low marginally exceeded this level at $32.13)
- 23.6% retracement: $33.31 (now converted to support)
- 0% extension: $35.60 (key resistance)
The rejection above the 38.2% level and surge through the 23.6% retracement suggests the uptrend is resuming, with $35.60 as the next technical target.
Concluding Synthesis
Confluence is observed between volume-confirmed candlestick reversal, KDJ/MACD bullish crossovers, and the successful defense of the 38.2% Fibonacci level. The Bollinger Band breakout and RSI reset provide additional confirmation of directional change. The sole divergence exists in the lagging MACD centerline, suggesting initial-stage momentum. Probabilistically, these factors collectively support continued upside toward the $35.60 resistance, contingent on holding the $33.31 (23.6% Fib) support during consolidation.