Devon Energy Corp. (DVN), like the rest of the energy and exploration sector, had a rough year in 2023. Fortunately, that didn't turn out to be a long-term issue for the company. Energy prices have bounced back, and last year's declines gave the company some breathing room to improve operational efficiency while expectations were low.
DVN is a little undervalued right now, but what will matter most is whether oil prices continue to rise. In light of the recent spending and hiring reports in the U.S., we think energy prices are likely to continue moving higher in the short term.
From a technical perspective, DVN has broken long-term resistance and Predictive Alpha's price target is moderate enough that this looks like a good entry point for some short-term profits.
However, because the market has been choppy lately, we recommend placing a limit order that is "Good 'til Cancelled" (GTC) at the target price so we can take advantage of any sudden spikes to the upside.
Set a limit order to buy Devon Energy Corp. (DVN) for $53.75 or less.
DVN's share price was $53.53 when the signal was generated on Apr. 9.
We expect DVN's target price of $55.57 to be reached by May 7 (21 trading days from today).
Your next steps:
Set a limit order to enter the trade for $53.75 or less.
Once the initial buy order is filled, your next step is to:
Set a Good 'til Cancelled limit order to close the position at $55.57.
If the stock demonstrates strong bullish momentum within the first 10 days of the trade, we may recommend allowing the trade to run further and canceling the sell order. If market conditions justify a change, we will send you an alert at that time advising you of a new price target and stop loss.
We will not hold this trade any longer than May 7.
Trade Notes
Now, please be aware that some stocks can be volatile — especially after a recommendation is issued.
If the stock is out of our maximum buy range, we do not recommend chasing the stock. You can use a limit order for our maximum buy price and allow the stock to settle.
We recommend checking out a few of our training videos if you have any concerns about trading. You can learn…
Timing is everything when it comes to these trades, so head to your app store now, download the free TradeSmith app, and enable push notifications… because the next great trade is right around the corner!
John Jagerson & Wade Hansen Analysts, Predictive Alpha
P.S. For any questions or concerns, check out your brand-new Frequently Asked Questions page, which you can access here. Otherwise, reach out to or contact your Customer Concierge Team at 866-385-2076 or JohnandWade@tradesmith.com Monday through Friday, 9:00 a.m. to 5:00 p.m. ET. Our dedicated team will be glad to assist you.
TradeSmith is not registered as an investment adviser and operates under the publishers' exemption of the Investment Advisers Act of 1940. The investments and strategies discussed in TradeSmith's content do not constitute personalized investment advice. Any trading or investment decisions you take are in reliance on your own analysis and judgment and not in reliance on TradeSmith. There are risks inherent in investing and past investment performance is not indicative of future results.
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