With crude oil trading over $100 and Natural Gas over $7, Energy names continue to dominate the top of the rankings in the SIA S&P/TSX 60 Index Report. Cenovus Energy (CVE.TO) has moved up two spots to the #1 position in the Report after finishing up 10.34% yesterday. Since we last highlighted CVE.TO on September 23, 2021 after it had moved into the Favored zone, Cenovus Energy has now more than doubled since then all while remaining in the Favored zone and most of the time remaining at or near the top of the Report! We often see positive earning surprises from highly ranked Relative Strength names, and CVE.TO is another example.
Cenovus Energy reported yesterday a more than seven-fold jump in quarterly profit that surpassed analyst estimates. They also announced they are nearly tripling their dividend from its base $0.14 to $0.42 per share annually beginning in the second quarter. Cenovus bought rival Husky Energy last year to create Canada’s second largest oil and gas producer and saw its net earnings rise to $1.63B or $0.81 per share, up from $220M last year. The company has also reduced its net debt and increased its 2022 capital expenditure forecast by $220M.
Cenovus Energy (CVE.TO) has broken out to new multi-year highs above prior resistance into a new Double Top point and figure chart pattern. This is the highest level CVE.TO has hit since 2014.Initial resistance appears at the $25.02, followed by $27.08 based on a prior price movement. Support is found at $21.35, based on March’s past price history and below this at $19.73 based on February’s movement. While in the Favored zone of the SIA S&P/TSX 60 Report, CVE.TO has moved to higher highs in a double top (or triple top) chart pattern 5 times in a row now. With a bullish SMAX score of 10, CVE.TO is exhibiting strength against all asset classes.
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