With oil prices starting to fall back this month, investor interest in energy stocks has weakened lately. Canadian Natural Resources, for example, has dropped out of the green zone of the SIA S&P/TSX 60 Index Report for the first time since November of 2020. On Friday, it fell 3 positions to 16th place and it is down 13 spots in the last month.
A major breakdown is underway in Canadian Natural Resources (CNQ.TO) shares. Earlier this month, CNQ.TO failed to break through $85.00 resistance completing a bearish double top failure. In the last two weeks, the shares have turned downward, falling below its 50-day moving average, snapping an uptrend line, and falling into the mid $60s in a jump in volume, indicating increased distribution.
Next potential downside support appears at an uptrend line near $58.00, then the $50.00 round number, then another uptrend line near $45.00. Initial rebound resistance appears near $70.00.
A decisive downturn has started in Canadian Natural Resources (CNQ.TO) shares. Earlier this year, the shares staged a big run from near $50.00 up toward $85.00 in April before running out of steam and pausing in the $75.00 to $85.00 area. Recently, $75.00 support failed and the shares broke down, completing a bullish Double Bottom pattern that signalled the start of a new downtrend that has extended into a bearish Low Pole.
Based on a horizontal count, next potential downside support appears near $59.35, followed on trend by previous support and resistance levels near $53.75 and $48.70, around the $50.00 round number. Initial rebound resistance appears near $70.90 based on a 3-box reversal.
With a bearish SMAX score of 2, CNQ.TO is exhibiting weakness against the asset classes.
Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.
