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