Suncor Energy Inc. declined from $47.18 to $30.89 (A-B) and then settled in a bullish technical pattern known as an Inverse Head-and-Shoulder formation (solid lines). In late 2016, the stock had a sharp rise to $44.90 (C) and then traded below a falling trend-line for almost one year (dotted line).
The recent rise to $47.69 signalled renewed investor interest and the start of a new up-leg (D). The current pullback toward the 40-week Moving Average (4owMA) should provide a good entry level.
Behaviour indicators including the rising 4owMA confirm the positive status. Only a sustained decline below ±$41 would be negative.
Point & Figure measurements provide targets of $53 and $59. Higher targets are visible.
Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com
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