Company Description: Devon Energy Corporation and its subsidiaries primarily engage in oil and gas exploration, development, and production; the transportation of oil, gas, and natural gas liquids; and the processing of natural gas. The company owns oil and gas properties principally in the Permian Basin within Texas and New Mexico; the Mid-Continent area of the central and southern United States; the Rocky Mountains area of the United States; the offshore areas of the Gulf of Mexico; and the onshore areas of the Gulf Coast, principally in south Texas and south Louisiana. It also owns oil and gas properties in the provinces of Alberta, British Columbia, and Saskatchewan, Canada. In addition, the company owns properties located in Azerbaijan, Brazil, and China. Further, Devon Energy's marketing and midstream operations include the marketing of oil, gas, and natural gas liquids, as well as the construction and operation of pipelines, storage and treating facilities, and gas processing plants in North America. As of December 31, 2007, the company had proved reserves of 677 million barrels of oil; 8,994 billion cubic feet of gas; and 321 million barrels of natural gas liquids. It also had interests in 5,586 net oil producing wells and 14,960 net gas producing wells. Devon Energy sells its gas production to various customers, including pipelines, utilities, gas marketing firms, industrial users, and local distribution companies; and crude oil production to refiners, remarketers, and other companies. The company was founded in 1971 and is based in Oklahoma City, Oklahoma.

Our Analysis: The shares of Devon Energy Corp. 'DVN' closed below a key support level yesterday on heavier than normal trading volume. This is a bearish trading signal. The shares of 'DVN' should continue to move lower and test $57.34/share, the point from which they gapped higher on the open of trading on July 24th of 2006. If the shares of 'DVN' close below that level as I expect they will, then they should keep moving lower and test $53.77/share, the point from which they gapped higher on the open of trading on June 23rd, 2006. There is a good chance the shares of 'DVN' should close below that level and test our lower price target of $49.10/share, a point of support established in mid June of 2006. I see upside resistance on the shares of 'DVN' @ $59.50/share, and have set my stops accordingly @ $59.89/share.