Publisher’s Note: Bryan Bottarelli just told me something I didn’t believe at first.

Most stocks overreact to bad news by an average of 87%.

Which means if you buy at 3:30 p.m. on an ugly day and sell the next morning… You could catch the entire snapback in one night.

He’s walked me through the data. Ten years of it. The pattern is consistent.

On Wednesday, March 18, at 2 p.m. ET, he’s going live to show you exactly how it works – including the 30 best stocks to flip and the exact criteria he uses.

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– Stephen Prior, Publisher

Twenty percent of the world’s oil flows through the Strait of Hormuz. Iran controls half of it.

And this company doesn’t need a single drop from the Middle East to print money from this chaos.

While missiles fly in the Middle East and traders panic about supply disruptions, Devon Energy Corp. (DVN) sits in the perfect position to capitalize on the volatility – without any of the geopolitical risk.

Up 26% year-to-date while the broader market struggles, DVN has built a technical foundation that suggests institutional money understands exactly what’s coming next.

A Perfect Storm

The ongoing tensions in the Middle East have created a perfect storm for U.S. energy producers. Every headline about disruptions in the Strait of Hormuz sends oil prices higher, but DVN captures all the upside without the downside exposure.

As a U.S.-focused producer with low-cost operations in proven basins like the Permian, DVN benefits from higher crude prices while avoiding the geopolitical risks that plague international peers.

When oil spikes due to supply fears, DVN’s margins expand. When tensions ease, DVN still has the operational efficiency to maintain profitability.

It’s the best of both worlds: exposure to oil volatility upside with none of the Middle East risk.

What the Chart Is Telling Me

DVN’s chart shows a “perfect storm” of bullish indicators as geopolitical catalysts align.

Stacked EMAs Signal Sustained Momentum

The daily chart shows textbook bullish alignment – the exponential moving averages are stacked in perfect ascending order with price action riding above all of them.

This isn’t just a bounce. It’s sustained institutional accumulation, creating accelerating buying pressure over time.

When you see this configuration in energy stocks during periods of oil volatility, it often precedes multi-week rallies that even seasoned traders don’t expect.

The Daily Squeeze: Coiled for Explosive Movement

More compelling is the daily squeeze pattern that’s been building. Volatility has contracted sharply – think of a spring being compressed. The Bollinger Bands have narrowed inside the Keltner Channels, creating that low-volatility coil that typically resolves with explosive price action.

In energy stocks, these squeezes frequently resolve upward during periods of rising crude prices.

DVN is sitting right at this inflection point, building energy for the next major move just as geopolitical tensions provide the catalyst.

Relative Strength: Leading While Others Lag

Here’s what really gets my attention: DVN’s relative strength versus the broader market is breaking out from a multiyear base. While the S&P 500 struggles with uncertainty, DVN has carved out clear leadership in the energy sector.

This isn’t random market noise. It’s institutional money rotating into names that can thrive on oil volatility without Middle East exposure.

Why I’m Watching This

While I focus primarily on technical setups, it’s worth noting that DVN trades at reasonable valuations while generating strong free cash flow – the kind of fundamental backdrop that supports sustained technical momentum.

The upcoming merger with Coterra Energy adds operational synergies that could enhance efficiency across key production areas.

When you combine solid fundamentals with rising oil prices driven by geopolitical tensions, you create an environment where technical breakouts can have real staying power.

DVN is currently building a foundation near important technical levels that could trigger the next major move. Trading well below its 2022 peak, there’s substantial upside if the technical and geopolitical catalysts continue to align.

Your Action Plan

The beauty of this setup is that it offers defined risk parameters. The moving average structure provides clear support levels to monitor, while overhead resistance zones from previous consolidation periods mark the breakout points to watch.

If DVN maintains its position above the key moving averages while Middle East tensions keep oil elevated, the technical confluence suggests significant upside potential. But if it loses the moving average support that’s been holding, or if geopolitical tensions ease significantly, the thesis changes.

Every missile launch in the Middle East reminds the market why U.S. energy independence matters. DVN represents exactly that independence – the ability to profit from oil volatility without the geopolitical risk that comes with international exposure.

The combination of technical momentum and geopolitical positioning creates a compelling risk-reward setup. While I don’t currently hold a position, this is exactly the type of configuration I monitor closely when global tensions provide energy-sector catalysts.

When you see stacked EMAs, a daily squeeze building energy, and geopolitical events driving your commodity higher, it’s worth having on your radar.

DVN has built a technical foundation that suggests institutional accumulation, just as Middle East chaos is creating the perfect catalyst for U.S. energy producers.

If you want to stay up on what I’m trading, make sure to check out Profit Surge Trader.