Canadian Natural Resources (CNQ) is expected to report its third-quarter results next week, so let's check out the charts of heavy crude oil producer to see what they have to reveal.
In this daily bar chart of CNQ, below, we can see twin lows around $45 with a low in July and again in September. Prices have rallied above the late August high to refresh the uptrend. CNQ is trading back above the rising 50-day moving average line and above the rising 200-day line. The On-Balance-Volume (OBV) line shows us similar lows in July and September and has started to turn upward, signaling a return to more aggressive buying. The Moving Average Convergence Divergence (MACD) oscillator has made a higher low in September versus July for a bullish divergence and has moved above the zero line for an outright buy signal.
In this weekly Japanese candlestick chart of CNQ, below, we can see a bullish picture. Prices have turned back up to close above the rising 40-week moving average line. The weekly OBV line shows the start of improvement in October. The MACD oscillator is just now crossing above the zero line for a buy signal.
In this daily Point and Figure chart of CNQ, below, we can see the upside breakout on this chart and a price target in the $73 area.
In this second Point and Figure chart of CNQ, below, we used weekly price data. Here the chart suggests a target in the $87 area.
Bottom line strategy: Traders who are looking to increase their exposure to energy names could go long CNQ on a one- or two-day shallow dip. Risk to $53. Our price objectives are $73 and $87.
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