Devon Energy (DVN) dropped by as much as 11% on Wednesday morning after missing Wall Street’s estimates for earnings.
The company reported earnings per share of $0.38 and total revenue of $3.98 billion, missing expectations for earnings of $0.60 and beating revenue expectations of $3.52 billion.
As can be seen on the chart below, shares of Devon Energy broke the low for its current market cycle three weeks ago.
That’s some heavy selling. Based on our analysis of its market cycles, our projection is for price support to show up at $28.80, based on the 61.8% Fibonacci retracement.
The market cycles are designated by the black semicircles at the bottom of the chart.
Careful with this one until it shows some signs of firming up… and know your trading timeframes!
Devon Energy (DVN) Stock Chart with Weekly Bars
Visit our site for more on our approach to using market cycles to analyze stocks. You can also watch the askSlim Market Week every Friday afternoon.
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Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
