This is an update article to the original article dated September 20, 2021: https://eresearch.com/2021/09/21/eresearch-reports/chart-of-the-day/chart-of-the-day-suncor-energy-inc/
UPDATE
The share price for Suncor (TSX: SU; and NYSE: SU) in our September 20 article was C$24.27 (closing price from Friday, September 17).
The stock closed on Friday, October 8 at C$28.81, a gain of 19%. Not bad for three weeks work! Wish all of my stock purchases were like that. Alas!
In our Original article, we stated:
Turning to SU, its RUST longer-term down trend-line line [see Chart below] currently sits just under $30, which is about 20% above the current stock price. Still a bit to go, but certainly achievable. If SU can break above this declining down trend-line, this would be very favourable for the stock, with greater expectations for further appreciation. The Double Bottom BLACK line that formed over a seven-month period is also bullish. On a cautious note, it is important for the stock to continue to trend above its GREEN up-trend Support line. Falling below it for an appreciable time would be quite bearish.
Here is Chart 2 from our September 20 Article.
Chart 2 (September 20 Article): Two-Year Performance
Let us bring this chart up to date. We will put the same chart lines into the current chart.
Chart 2 (This Article): Two-Year Performance
COMMENT
The stock has now reached its RUST down-trend line. This is a critical juncture.
If SU can break through this Resistance line with conviction, then higher prices are indicated, and, perhaps, it could test its two-year high of C$45 in January 2020.
If the stock is thwarted by this Resistance level, it could go back to test its GREEN rising up-trend line. If that Support level holds, then we would anticipate another run at the declining Resistance line. If it does not hold, then a return to test the support prices represented by the BLACK Double Bottom comes into play.
SIX-MONTH PERFORMANCE
Let us have a look at the last six months of stock performance.
Chart A: Six-Month Performance
Observation: The RED down trend-line has been significantly broken to the upside, and the stock has been climbing comfortably above its rising GREEN up trend-line. The BLUE Resistance trend-line at around C$31½ represents the next target, which could be a suitable exit point for shorter-term traders.
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