Canadian Natural Resources (CNQ.TO) is the highest ranked stock from the resurgent Energy sector in the SIA S&P/TSX 60 Index report, having moved up 1 spot yesterday and 47 spots in the last month to 6th place, near the top of the Green Favored Zone.
Since completing a successful retest of a channel bottom near $20.00 in late October, Canadian Natural Resources (CNQ.TO) shares have been under renewed accumulation. Earlier this month they snapped a downtrend line and this week, the shares have broken through the $30.00 channel top to signal the start of a new upleg.
Next potential upside resistance on trend appears at previous support/resistance near $37.80, then $40.00 where a measured move and a round number converge. Initial support appears near $27.50.
So far this month, Canadian Natural Resources (CNQ.TO) shares have snapped out of a downtrend, completed a bullish Double Top pattern and a bullish Spread Triple Top pattern, and regained the $30.00 level, all combining to indicate that a consolidation phase which started back in June has ended and the shares recovery trend has resumed.
Initial upside resistance on trend appears near $35.40, where a vertical count and previous column highs converge, followed by $37.55 where several vertical and horizontal counts cluster together. Initial support appears in the $28.40 to $29.00 range based on a 3-box reversal and a retest of the recent breakout point.
With a perfect SMAX score of 10, CNQ.TO is exhibiting near-term strength across the asset classes.
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