After our previous report (April 11, 2009 - $32), Suncor Energy Inc. rallied above the $20-$30 horizontal trading range and fulfilled our target of $40 (A). The stock subsequently settled into another area of accumulation between $30 and $40, which produced a bullish technical pattern known as a Duplex Horizontal. A rise above $40-$41 would signal the resumption of the up-trend. Only a decline below the 40-week moving average (currently at ±$34.50) would reverse the upside potential.
Point & Figure measurements provide targets of $49 and $54 (29-per-cent and 42-per-cent appreciation potentials from current levels). The large Duplex Horizontal (see dashed lines) supports higher targets.
Ron Meisels is a contributor to the www.NA-marketletter.com web site. Monica Rizk is the senior Technical Analyst for Phases & Cycles Inc. They may hold shares in companies profiled. Please see the site for a glossary.