Suncor Energy (SU.TO) has been climbing up the rankings in the SIA S&P/TSX Composite Index Report since July. Over the last two months, the shares have exited the red zone, climbed up through the yellow zone and yesterday, they returned to the Green Favored Zone for the first time since November. SU.TO is currently sitting in 56th position, up 2 spots on the day and up 87 places in the last month. For over a year, Suncor Energy (SU.TO) shares have been range bound, trading back and forth between $37.00 and $47.00. SU.TO successfully retested the bottom of this range back in the spring and over the summer, it has been on an upswing. Since July, the shares have been under renewed accumulation, establishing an uptrend of consistently higher lows, snapping out of its previous downtrend and completing a bullish Golden Cross of its 50 and 200-day moving averages.
Currently SU.TO is bumping up against the top of this trading range. A close above $47.50 would complete a breakout and signal the start of a new advance. Should that occur, initial resistance may appear in the $50.00 to $51.00 area between a round number and previous high, then near $57.00 based on a measured move from the current rectangle. Initial support appears near $45.00.
Suncor Energy (SU.TO) shares spent the first half of this year drifting downward, but have been on an upswing since retesting a higher low near $37.00 back in July. Over the last two months, the shares have consistently advanced without even a 3-box correction, completing a series of Double Top and Spread Double Top patterns.
Currently, Suncor Energy is testing the top of a trading range near $47.50. A close above that level would complete a bullish spread triple top pattern and signal the start of a new advance. Should that occur, next potential resistance may appear at the 2022 peak near $50.45, $53.50 based on a horizontal count, or $62.70 based on a vertical count. Initial support appears near $43.00 based on a 3-box reversal.
With a bullish SMAX score of 8, SU.TO is exhibiting strength against the asset classes.
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