Suncor declined from $47.18 to $30.89 (A-B), had a recover rally (C), and then settled in a bullish technical pattern known as an Inverse Head-and-Shoulder formation (solid lines). The recent rise to $42.14 signaled the breakout form this pattern and the start of a new major up-trend (D).
Behaviour indicators including the rising 40-week Moving Average (40wMA) confirm the bullish status. The stock is somewhat overbought and could have a minor pull back toward $39-40, however, only a decline below $36-37 would be negative.
Point & Figure measurements provide a target of $49. The large Inverse Head-and-Shoulder formation (solid lines) supports higher targets.
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