Energy Stock Still Has Gas in the Tank

Devon Energy Corp (NYSE:DVN) stock carries a 16.2% deficit for 2023, but it looks like it is starting to show signs of life. The equity is up 1.3% at $51.44 at last check, and while overhead pressure remains at the $55 region, the $48 level has emerged as an area of support. Better yet, the security is now trading near a trendline with historically bullish implications.

More specifically, Devon Energy stock is trading just one standard deviation away from its 80-day moving average. Per Schaeffer's Senior Quantitative Analyst Rocky White, the security saw five similar signals in the past three years, finishing higher one month later 100% of the time with an average 16.8% gain. 

Attractively priced premiums make now an excellent time to gamble on DVN's move higher. In fact, the equity's Schaeffer's Volatility Index (SVI) of 28% ranks in the 11th percentile of its annual range, suggesting options traders are now pricing in low volatility expectations.