SU Technicals: Some Mixed Signals?Well, WTI seems like it is on it's way back to the $80s today.
It has taken just over a year, but it would appear that on the daily, SU is breaking out of it's Bull Pennant to the upside, which is very bullish. Just look at that all that huge runway and upside potential ahead of it as it runs through it's previous price levels, and now above the the resistance levels of almost all of it's moving averages on it's way to the $40's:
However, looking at XLE daily, we have just spiked past it's upper Bollinger Band....
'Danger Will Robinson!'
Not to say that XLE won't continue upwards, but just know that a price settling outside of the Bollinger bands happens only 5% of the time. It may hug the upper Bollinger band and continue on its way up, but keep in mind this is where the pros and algos take profits. That alone could bring the sector down, of which SU's share price action is lock step. A trader may want to place a trailing stop loss in case of a retracement.
I am optimistic, but cautiously holding full max postitions in both SU and CVE, and some others, plus a lot of call options.
As I wanted to post this to point out some technicals here, I'm not going to mention some of the bullish fundamentals we have in place such as the widening supply demand imbalance, increasing crack spreads, TMX in a few months, global shortage of heavy sours, the start of high product demand season, OPEC+ cuts taking effect, the end of SPR releases, favourable NG and input pricing, global inventory draws, Asian record demand, and US shale production struggling to maintain production, and a main street economy and employment market that refuses to show signs of a recession.
For those already in, enjoy the ride. You have earned it!
Got oil?