Canadian Natural Resources (CNQ.TO) - August 24, 2023
Oil producer Canadian Natural Resources (CNQ.TO) has climbed up to the 6th ranking in the SIA S&P/TSX 60 Index Report. CNQ.TO has moved up 5 spots in the last week, 12 spots in the last month, and 15 spots in the last quarter in the TSX 60 Report.
Canadian Natural Resources reported second-quarter net earnings per share of $1.34 in its latest report which fell from the year prior, but total revenues of $5.87B came in over consensus estimates ($5.44B). Along with the recent rise in crude oil prices contributing to a better outlook, CNQ.TO has moved up to new all-time highs on a dividend adjusted chart.
Canadian Natural Resources (CNQ.TO) has traded for most of the last year in a range bouncing between $67 and $81. It has since broken out of this channel slightly above $83, but confirmation of this move is still to be determined. Its 50 day moving average fell below the 200 day moving average at the end of June, but say a golden cross triggered again around August 10th where the 50 day moving average moved above the 200 day again.
The prior resistance level around $81 has proven to be very resistant to prior attempts to break through failing in April, June, and October of 2022 and again in April and May of 2023. Using the polarity principle, prior resistance levels often turn into future support levels should the new move above this level hold, now up to around $82-$83.
Looking at a point and figure chart at 2% for Canadian Natural Resources (CNQ.TO), we see a major breakout has occurred above its prior highs. Triggering a Double Top chart pattern, CNQ.TO has moved upwards past prior resistance towards its first resistance level at $89.28. Further resistance can be found above at $94.74 should this trend continue.
Initial support appears below at $76.20 based on a 3-box reversal. Further support can be found near the bottom of its YTD range around the $67 - $69 level. Its prior move in May where it had triggered a bullish quad top chart pattern quickly reversed moving back down to the second support level. But based on rising crude oil prices and a strong sales outlook in its latest Q2 earnings report, we will see if CNQ.TO can break out with confirmation the second time establishing itself above its prior trading channel.
With a bullish SMAX score of 8, CNQ.TO is exhibiting near-term strength against the asset classes.
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