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