Suncor trading in a narrow congestion area
Key points to consider from the above daily candlestick chart:
- Trading in a narrow congesting area also known as a trading range of $34-$35.
- The near-term trend is sideways.
- The intermediate trend is up.
- The probability favors the continuation of the intermediate uptrend.
- Volume, OBV and RSI are confirming indicators.
- Look for increased volume and a breakout at $35 to add to long positions.
- A confirmed break below $34 would be reason to liquidate long positions.
- A time period to monitor for resolution of the congestion area is one to three months.
Reference my March 11, 2011 post for Suncor: Bearish engulfing pattern on the weekly chart
Reference my March 10, 2011 post for Suncor: Is the sun still shining on Suncor?
Reference the website for Suncor to review the fundamental data for the company.
Note: This technical analysis is for educational purposes so you can learn to trade online using candlestick charts. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The chart snippets are from BigCharts.com which I recommend and have used for fifteen years. The author of this article may hold long or short positions in the featured stock or index.
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