Could Canadian Natural Resources Breakout Be a Gusher?

 | Nov 03, 2017 | 5:25 PM EDT
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Canadian Natural Resources (CNQ) broke out on the upside today. Prices had failed to break above the $34-$35 area a number of times, but this time was the charm. Let's review the latest charts and indicators to see how high prices might rally.

In this daily bar chart of CNQ, below, we can see there were at least three rallies that failed in the $34-$35 area -- in December, April and September. Today we are clearly trading above that ceiling and above the rising 50-day and 200-day moving average lines. The On-Balance-Volume (OBV) leads the way on the upside as it has risen steadily from early June. The OBV line has made new highs recently to confirm the breakout. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line in a bullish mode.

In this weekly chart of CNQ, above, we can see prices are above the rising 40-week moving average line. The weekly OBV line is bullish, as is the rising MACD oscillator.

In this Point and Figure chart of CNQ, below, we can see the breakout at $34.61 and a first upside price target of $42.81.

Bottom line: The charts are bullish. The indicators are bullish. I would go long CNQ at the market risking below $33 and looking for gains to the mid-$40s.

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