DVN | Long | Strong EPS | (April 2025)

DVN | Long | Strong EPS & Triangle Breakout Setup | (April 2025)

1️⃣ Short Insight Summary:
Devon Energy (DVN) is showing bullish potential with strong earnings and a breakout forming from a consolidation triangle. With solid fundamentals and positive momentum on the 4H chart, DVN may be gearing up for a strong move higher.

2️⃣ Trade Parameters:
Bias: Long
Entry: Watching for breakout confirmation from triangle pattern on 4H timeframe
Stop Loss: Below triangle support or recent swing low (based on structure)
TP1: $35
TP2: $39
TP3: $44
Final Target: $60–$70 (long-term view)
✅ After all TPs, I usually leave ~5% of the position open to catch any extended move. Upside is unlimited — downside is capped at zero.

3️⃣ Key Notes:
🔹 Fundamentals:

🔹 Revenue: 15B

🔹 Net Income: $2.9B

🔹 EPS: ~$5

🔹 EBITDA: 0.74

🔹 Shares Float: 150M

🔹 Market Cap: ~20B

Risk: Free cash flow is significantly lower compared to debt levels, which is something to monitor closely.

Despite the debt concern, the company’s earnings per share has been consistently growing — even on a quarterly basis. This shows operational strength and long-term upside.

🔹 Technical Setup:
DVN has been consolidating in a triangle formation and is now showing signs of an upside breakout. Momentum on the 4H chart leans bullish, and if confirmed, the move could target the $44 zone and possibly extend much higher over time.

4️⃣ Follow-up Note:
I’ll be watching how DVN behaves around key resistance. If we break out with volume, I’ll adjust my stop and potentially update the targets. Risk management remains key.

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Disclaimer: This is not a financial advise. Always conduct your own research. This content may include enhancements made using AI.