There is a very obvious head and shoulder pattern forming that only needs the downside break to confirm, which could happen any day now based on the technicals. It could be so obvious that it fails, but I wanted to point it out.
After bouncing off the neckline three days ago this index has had two very weak rally days which have managed to close well off their intraday highs. The safest play is to wait for the break of the neckline and I’ve outlined 8 stocks in this Index that I think could be good shorts should the pattern come to fruition.
The action on DVN is very bearish and typical of many stocks in this index with the volume being significantly higher on the down days and the stock having a difficult time staying over the 20 day ema.
2 stock charts below and the following stocks: