SIA Chartsâ Relative Strength rankings not only help investors to identify which stocks in a universe are outperforming and underperforming against their peers, but also when relative performance trends are changing. With the price of oil rallying again yesterday, energy stocks continue to attract renewed interest. Suncor Energy (SU.TO) for example, has jumped from the red zone to the Green Favored Zone in the SIA S&P/TSX 60 Index Report this week, returning to the top tier for the first time since November.
In the last week, Suncor has jumped 11.8%, compared with a decline of 0.5% for the S&P/TSX Composite Index and a drop of 2.5% for the S&P 500 Index. This has enabled SU.TO to climb 25 spots in the SIA S&P/TSX 60 Index Report this week to 11th place. A major breakout is underway in Suncor Energy (SU.TO) following a major advance that took place between September 2021 and June 2022, the shares went into consolidation mode, trading in a sideways range between $34.00 and $49.00. Over that time, a big Symmetrical Triangle of higher lows and lower highs formed, suggesting this was a consolidation phase within a longer uptrend.
Over the winter, the shares came under renewed accumulation, rallying up off of $40.00 on increasing volumes. In recent weeks, the shares have continued to advance breaking through $49.00-$50.00 to new all time highs. That previous resistance area may now reverse polarity to become initial support. Measured moves suggest next potential upside resistance may appear near $58.00, and then $64.00 on trend.
Suncor Energy (SU.TO) has embarked on a new advance, rallying to new all-time highs. From June of 2022 to February of 2024, SU.TO formed a Symmetrical Triangle of higher lows and lower highs, a classic consolidation pattern. Last month, accumulation resumed and over the last number of weeks, the shares have completed a number of bullish patterns including a Double Top and a Spread Triple Top.
This month, Suncor has continued to build a High Pole, clearing the $50.00 round number hurdle and continuing to climb. Next potential resistance appears in the $58.75 to $61.15 area based on a cluster of horizontal and vertical counts, then $64.85 based on a vertical count. Initial support appears near $48.20 based on a 3-box reversal and a retest of a recent breakout point.
With a perfect SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 10 out of 10, SU.TO is exhibiting short-term strength across the asset classes.
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