DVN - Devon Energy Corporation $64.00 +1.10 (+7.51)

Devon Energy Corporation produces oil and natural gas onshore and offshore in the U.S., Canada and internationally. The company has concentrated its North American oil and gas properties into six core operating areas. This concentration of business allows Devon to achieve a lower overall cost structure in each of these core areas, improving profit margins across the board. As for a short term catalyst, the breakout of war in the Middle East caused oil prices to climb above the $35 dollar mark for the first time since 1990's Persian Gulf War. This tension is creating another near-term flight to energy stocks, which is bound to put additional buying pressure on the shares of DVN. As for capital structure, the company has 400.0 million shares authorized and 86.6 million shares outstanding, enough for a 2:1 stock split. However, the company has never split its stock before, so it's difficult to gauge what level DVN may choose to split. As for our play, shares extended a weeklong rally with a strong close above previous highs near $62.50. Volume improved to 1.4 million shares and helped to reconfirm the breakout. With this in mind, we'll look to the $65 and $70 marks to present the next challenges. On the flip-side, initial support should come at the $62.50 level (previous resistance). Further down the $60 mark, bolstered by the 20-dma of $59.55 should present a firm foothold ahead of our stop at $58. Look to the Oil Index (XOI) for confirmation of strength or weakness in the stock to help time entry points. Earnings are not until late October 26, so we'll use support and resistance, as well as the above mentioned indicators, to signal our trades.

Picked on October 12th @ $64.00 Change since picked 0.00