Devon Energy Corporation (NYSE:DVN) is trading at a valuation of $71. 06. The stock appears to be at a resistance level. This new level was established only three weeks after the stock broke out from $64 resistance. Devon Energy is powered by very strong momentum that will see the stock rise even further.
Devon Energy is an attractive investment candidate in a market that is heavily battered by the bears. Two factors are driving the stock up. The first is the strong growth recorded in the energy segment. This growth is expected to continue into the foreseeable future.
The second factor is momentum. The momentum began with the rise in oil and gas prices. We expect the momentum to be sustained by a concentration of buyers in the energy segment.
Devon Energy breaks out to find new highs
Source – TradingView
At a valuation of $71.06, Devon Energy is trading at an RSI of 73.74. The stock is in the overbought region, and the RSI ought to have triggered a sell-off. However, an assessment of the linear regression channel shows the stock breaking out to new highs. Investors are now waiting to see how much higher the stock could rise. This analysis observes that Devon Energy will move to find a valuation of $80 in the coming few weeks.
Devon Energy is an attractive momentum and growth stock. The bullish trend in the oil and gas segment continues to create demand for the counter. The next price target for Devon Energy is $80.
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