Cenovus Energy Inc. - (CVE.TO) - January 6, 2021
Cenovus Energy (CVE.TO) continues to climb within the Green Favored Zone of the SIA S&P/TSX 60 Index Report, rising another spot yesterday to 8th place.
A major breakout is underway in Cenovus Energy (CVE.TO) shares which cleared $8.00 for the first time since last March, completing bullish Ascending Triangle and Cup with Handle (a larger rounded bottom followed by a smaller higher rounded bottom) patterns. These breakouts occurred on a big spike in volume which indicates renewed investor interest, and combined with the other bullish indicators, signals the start of a new upleg.
Next potential resistance on trend appears near the $10.00 round number, then $11.75 where measured moves and previous highs converge. Initial support moves up toward the $8.00 breakout point from $7.00.
Back in November, a bullish Triple Top breakout signaled the start of a new uptrend for Cenovus Energy (CVE.TO) shares. Since then, the shares have remained under accumulation, snapping a downtrend line and completing a series of bullish Spread Double Top and Double Top breakouts, including one this week, confirming continuing accumulation.
Next potential upside resistance on trend appears near $9.35 and $10.35 based on horizontal counts, along with the $10.00 round number. Initial support appears near $7.70 based on a retest of a previous breakout point and a 3-box reversal.
With its bullish SMAX score increasing to 7, CVE.TO is exhibiting near-term strength against the asset classes.
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