Hello,
Could you please suggest which stock would be a better purchase: Husky, Suncor or Gibson?
Thank you,
Paul
Hey Paul,
Thanks for the assignment.
I will analyze Husky Energy Inc. (HSE) today and look into Suncor and Gibson Energy next week.
This will be the fourth time since 2010 that I explore the details associated with HSE. The last time was on Sept. 11, 2014, when the shares were trading for $32.16. Rene wanted my thoughts on the stock and where the price might be headed over a sixty day period.
The research conducted at the time indicated that the shares had touched a 52-week high of $37.31 in June of 2014 but from there started a decline that had the shares testing support at $32.00. The retreat had pulled the shares below support along the 50- and 200-day moving averages. It was also noted that the stock was in the early stages of a bearish crossover. It was advised that patience was needed. HSE was scheduled to report its quarterly results in October and it was noted that how the shares tracked into the flex point would help determine direction for the rest of 2014.
As things devolved HSE breached support before the end of September 2014 and declined to a 52-week low of $21.39 by December. Another examination of the charts will outline a possible course of action when managing this asset.
The three-year chart highlights the aggressive selling that investors had to endure through the fall of 2014 and the sharp recovery off the 52-week low in December. The MACD and the RSI both signalled a buy at the bottom but you really had to have been monitoring HSE closely to catch the sweet spot. Currently, the stock has met resistance at $29.00. A tip of the hat goes to Nelson Smith who on Dec. 1, 2014, made the call to buy HSE in a report published on the Motley Fool website.
The six-month chart provides a close-up of the buy signals generated in December by the MACD and the RSI as the shares were coming out of an oversold position. The shares have been building a base near $26.00 and have held support along the 50-day moving average. At the moment there are no indications that we are about to move through resistance at $29.00. HSE is scheduled to report its quarterly results on Feb. 12, 2015, which could provide the fuel needed to test resistance along the 200-day moving average near $30.50.
Make it a profitable day and happy capitalism!
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