• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Energy

Cenovus Energy's Quantitative Upgrade Evinces Improving Charts

Aggressive traders could look to buy a pullback towards $9.00, risking below $8.
By BRUCE KAMICH
Sep 25, 2017 | 12:37 PM EDT
Stocks quotes in this article: CVE

Cenovus Energy Inc. (CVE) was upgraded by TheStreet.com's quantitative service today, so we became curious what the charts and indicators looked like. Here's what we found.

In this daily bar chart of CVE, below, we can see a strong rally over the past four weeks that has brought prices back to the underside of the declining 200-day moving average line. Prices have been above the rising 50-day average line since the beginning of September. We can see a small lopsided double-bottom pattern with lows in late June and late August.

The On-Balance-Volume (OBV) line makes its low in June along with the price action. Heavier volume of trading since early April suggests that some investors dumped positions while others used the weakness to become buyers. There is a bullish divergence from April to August as the momentum study makes higher lows in April, June and August versus lower lows in price.

In this weekly bar chart of CVE, below, we can see the recent price improvement compared to the lengthy decline. Prices have rallied to the underside of the declining 40-week moving average line. Chart resistance does not enter the picture until the $13-$16 area.

The weekly OBV line has stabilized since June and the Moving Average Convergence Divergence (MACD) oscillator crossed to the upside from below the zero line in July, for a cover-shorts buy signal.

In this Point and Figure chart of CVE, below, we can see the rebound this month (look for the "9" on the chart). The chart projects a possible upside target of $12.40, but chart resistance is not seen until $13.02.

Bottom line: CVE is extended in the short run and could pull back to around $9 or so. Aggressive traders could look to buy a pullback towards $9.00, risking below $8. And $13 could be seen when the next rally gets underway.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are restricted from trading individual securities.

TAGS: Investing | U.S. Equity | Energy | Markets | How-to | Risk Management | Stocks

More from Energy

See That Down the Road? It's the Big 'Green' Bubble, Ready to Pop

Jim Collins
Jun 24, 2022 1:30 PM EDT

Environmental, social, and corporate governance has created a monster and gullible investors should hit the brakes on their EVs and run from the Washington technocrats while they have the chance.

Weber's Rally Was Cooked Up By the Shorts and Something I Experienced First Hand

Jonathan Heller
Jun 24, 2022 10:00 AM EDT

It should be an interesting ride from here.

Will This Year's Energy and Commodity Trades Become Last Year's Tumbling Tech?

Helene Meisler
Jun 24, 2022 6:00 AM EDT

I can't remember the last time anyone asked me about Apple. No one cares.

Here's What You Need to Know About Investing in Energy

Jim Collins
Jun 23, 2022 1:00 PM EDT

The rudderlessness in DC has created an environment that's downright hostile to domestic exploitation of hydrocarbons.

Occidental Petroleum Could See Its Charts Improve as Buffett Ups His Stake

Bruce Kamich
Jun 23, 2022 8:03 AM EDT

The stock of the oil giant has been sliding of late but should receive a boost as the Oracle of Omaha buys more Oxy shares.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 08:55 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    The 10 personality traits of successful traders an...
  • 12:08 PM EDT STEPHEN GUILFOYLE

    Stocks Under $10

    As a Portfolio Name Agrees to a Merger, Here's Our...
  • 10:44 AM EDT PAUL PRICE

    My Very Best Pick for the Next 12 Months

    American Woodmark . It rarely gets better than th...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login