Daily Stock Report

Canadian Natural Resources Ltd. - (CNQ.TO) - June 27, 2022

With oil prices starting to fall back this month, investor interest in energy stocks has weakened lately. Canadian Natural Resources, for example, has dropped out of the green zone of the SIA S&P/TSX 60 Index Report for the first time since November of 2020. On Friday, it fell 3 positions to 16th place and it is down 13 spots in the last month. 

A major breakdown is underway in Canadian Natural Resources (CNQ.TO) shares. Earlier this month, CNQ.TO failed to break through $85.00 resistance completing a bearish double top failure. In the last two weeks, the shares have turned downward, falling below its 50-day moving average, snapping an uptrend line, and falling into the mid $60s in a jump in volume, indicating increased distribution. 

Next potential downside support appears at an uptrend line near $58.00, then the $50.00 round number, then another uptrend line near $45.00. Initial rebound resistance appears near $70.00. 

A decisive downturn has started in Canadian Natural Resources (CNQ.TO) shares. Earlier this year, the shares staged a big run from near $50.00 up toward $85.00 in April before running out of steam and pausing in the $75.00 to $85.00 area. Recently, $75.00 support failed and the shares broke down, completing a bullish Double Bottom pattern that signalled the start of a new downtrend that has extended into a bearish Low Pole. 

Based on a horizontal count, next potential downside support appears near $59.35, followed on trend by previous support and resistance levels near $53.75 and $48.70, around the $50.00 round number. Initial rebound resistance appears near $70.90 based on a 3-box reversal. 

With a bearish SMAX score of 2, CNQ.TO is exhibiting weakness against the asset classes. 

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