Cenovus Energy Inc. - (CVE.TO) - April 11, 2024 (Daily Stock Report)

by SIACharts.com

Energy producer Cenovus Energy (CVE.TO) has steadily been marching its way back up the relative strength rankings in the SIA S&P/TSX 60 Index Report for the last two months. Starting near rock bottom in February, the shares exited the red zone in March, and yesterday, they returned to the Green Favored Zone for the first time since November.

In the last month, CVE.TO has climbed 28 spots to 15th place. Over that time, the shares have gained 13.9% while the S&P/TSX Composite Index has moved up 2.1%. Cenovus Energy (CVE.TO) shares have been on an upswing for the last three months and now have reached a potentially technically key turning point. For the last two years, the shares have been trending sideways in a broad range between $19.00-$20.00 support and $29.00-$30.00 resistance. Back in January, the shares successfully tested channel support and now are testing channel resistance.

CVE.TO has already cleared the $29.00 hurdle for the first time since the spring of 2022. A close above the $30.00 round number would confirm the start of a new advance. Should that occur, next resistance may appear in the $38.00 to $40.00 area based on a cluster of measured moves and a round number. Initial support appears near the $29.00 breakout point then closer to $27.50.

Cenovus Energy (CVE.TO) shares had been stuck in a $19.25 to $29.25 sideways trading range since June of 2022 but no longer. Since successfully retesting channel bottom support back in January, the shares have been under renewed accumulation, rallying to the top of the range without even a 3-box reversal along the way.

Building on a recent Spread Double Top breakout, Cenovus broke out and closed at a new high yesterday, signaling that consolidation is over and a new advance has commenced. Next potential upside resistance may appear in the $34.15 to $36.95 range where several vertical and horizontal counts cluster. Initial support appears near $27.45 based on a 3-box reversal.

With its bullish SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) increasing to 8 out of 10, CVE.TO is exhibiting short-term 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.

Total
0
Shares
Previous Article

Russell Investments: 2024 Strategic positioning update

Next Article

Flash Insights: March inflation—Yet another reason to delay easing

Related Posts
Subscribe to AdvisorAnalyst.com notifications
Watch. Listen. Read. Raise your average.