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ConocoPhillips - (COP) - April 22, 2024

With the price of crude oil consolidating recent gains above $80.00/bbl, the relative strength of energy producers continues to improve. Companies in the sector climbing up broad market relative strength ranking tables may seem as a sign that the sector is attracting capital away from companies in other industries. Integrated energy giant ConocoPhillips (COP) has been steadily making its way back up the rankings in the SIA S&P 100 Index Report. Earlier this month, COP exited the red zone and has been moving up within the Yellow Neutral Zone, closing Friday in 32nd place, up 39 positions in the last month. Over that time, COP has gained 6.0%, while the S&P 100 Index has declined by 4.3%.

Shrugging off a winter of discontent, ConocoPhillips (COP) shares have embarked on a new advance over the last two months. A breakaway gap over $115.00 that snapped a downtrend line with the first sign of renewed interest, quickly followed by breakouts over $120.00 and $125.00 that confirmed the start of a new uptrend. Initial resistance has emerged near $134.00 which coincides with a bullish Ascending Triangle when they broke out over $120.00. Next measured resistance after that appears near $141.00 then the round number of $150.00.

Initial support has appeared near $127.00 with more possible near $125.00 where a round number and recent breakout point converge.

A major breakout is underway in ConocoPhillips (COP) shares. Through the late fall and much of the winter, COP trended sideways to moderately lower. In February, the shares broke down by two rows then turned upward, completing a bullish Bear Trap that established a higher low that kept its longer-term uptrend intact. For the last two months, COP has been steadily climbing without even a 3-box correction, completing bullish Double Top and Spread Double Top patterns and breaking out to a new all-time high, all signaling that a new advance has commenced. Based on horizontal counts, initial resistance may appear near $144.75 or $153.63, then $159.85 which is based on a vertical count. Initial support appears near $121.13 based on a 3-box reversal.

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, COP is exhibiting short-term strength across the asset classes.

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