With a 13.4% one-day pop after the integrated oil giant doubled its dividend, restoring it to 2019 levels, Suncor Energy (SU.TO) has returned to the Green Favored Zone of the SIA S&P/TSX Composite Index Report for the first time since July of 2018. Yesterday, the shares finished in 55th place, up 22 spots on the day and up 91 positions in the last month.
Suncor Energy staged a major breakout yesterday, gapping up on the open, regaining $30.00, and blasting through the top of the $21.50 to $31.50 trading range that had been in place since June, all on a spike in volume, indicting a surge of renewed bullish interest from investors and signaling the start of a new upleg within a larger recovery trend.
Initial upside resistance for Suncor appears at a downtrend line near $36.00, followed by the $40.00 to $42.00 area where a round number, previous resistance and multiple measured moves cluster. Initial support appears between $29.50 and $30.00.
Since bottoming out about a year ago, Suncor Energy (SU.TO) shares have been steadily recovering, establishing an upward trend of higher highs and higher lows. Back in March, Suncor snapped out of a long-term downtrend that dated back to 2018, an encouraging sign. The shares stumbled in the summer, but the selloff was contained above $20.00 and previous lows, and in the last month or so, the shares have been bouncing back. Yesterday, the shares completed a bullish Double Top breakout, confirming that their recovery trend has resumed.
Horizontal and vertical counts suggest next potential resistance tests on trend may appear ner $38.00 and $40.30. Initial support appears near $29.35 based on a 3-box reversal.
With a bearish SMAX score of 5, SU.TO is still exhibiting weakness against the asset classes, but this could change if the shares continue to climb.
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