Suncor Energy Inc. - (SU.TO) - October 6, 2022 (Daily Stock Report)

by SIACharts.com

 

 

Bouncing back from a summer dip down into the red zone, Suncor Energy (SU.TO) has been rising back up the rankings in the SIA S&P/TSX 60 Index Report recently. Suncor has now returned to the Green Favored Zone for the first time since July after climbing 5 spots yesterday to 14th place.

Since a summer selloff was contained by support near $36.00, Suncor Energy (SU.TO) have been trading back and forth in a sideways channel between there and $45.00. The direction which the shares eventually break out of this range would indicate whether recent action has been base building or a pause within a larger downtrend.

A breakout over $45.00 would signal the start of a new advance with next potential resistance between the $50.00 round number and the June peak near $52.50.

A downturn from here could find support near the $40.00 round number or the $36.00 channel bottom. A failure there would signal the start of a new downleg with longer term uptrend support near $33.00.

 

Suncor Energy (SU.TO) shares trended downward through the summer in a correction of a previous major advance. In recent days, the shares have started to rebound and are currently approaching a potentially significant test of resistance near $45.00.

A close above $45.10 would complete a bullish double top pattern and confirm the start of a new uptrend with next potential resistance near the $50.00 round number, then $50.75 based on a horizontal count and $52.80 based on a horizontal count and a retest of the June peak.

A failure to break out, however, would suggest that the recent rally was just a trading bounce within an emerging downtrend. Downside support appears near $40.80 based on a 3-box reversal, then near $37.00 around a number of previous column lows.

With its SMAX score jumping from 2 last week to a bullish 7 today, SU.TO is exhibiting strength 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.

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