Cenovus Energy (CVE) is an integrated oil company that handles natural gas, crude oil, and natural gas liquids reserves. Because they have natural gas and crude oil production in Alberta and Saskatchewan, a Real Money subscriber north of the border asked for a review of the charts.
In this daily bar chart of CVE, below, we can see that prices have more than doubled in the past 12 months. CVE is trading above the rising 50-day moving average line as well as the bullish 200-day line. The On-Balance-Volume (OBV) line shows a rise for the past year and that tells us that buyers have been more aggressive than sellers. The Moving Average Convergence Divergence (MACD) has turned up above the zero line for a new outright buy signal.
In this weekly Japanese candlestick chart of CVE, below, we can see a bullish longer-term picture. Prices are trading above the positively sloped 40-week moving average line. The weekly OBV line has been climbing the past two years and confirms the price gains. The MACD oscillator has been bullish for the past year.
In this long-term weekly bar chart of CVE, below, we can see that prices have broken out of a five-year base pattern as well as breaking a long-term downtrend.
In this daily Point and Figure chart of CVE, below, we can see a projected target in the $20 area.
In this weekly Point and Figure chart of CVE, below, we can see a longer-term price target of $36.
Bottom line strategy: Traders could go long CVE at current levels and on any shallow dip. Risk to $11.50 for now. $20 and then $36 are our price targets for now.
