Oil Sector: SU (Suncor Energy Inc.)
Cup and Handle formation
Reasons for long side trigger above $83.36
1) Cup with handle forming: good volume on left side of cup with a slight drop in volume at cup base,and slight increase on right side,with a decrease on handle.Volume needs to increase if a break to the upside occurs or pattern will not be as valid.
2) Moving averages are in proper order.
3) Uptrend from previous breakout is still intact,along with uptrend in oil sector still intact.
4) 50 day sma has crossed above 200 day sma,with the 150 day sma approaching a cross above the 200 day sma to complete the proper order of the averages.
5) Four week consolidation in progress setting up for a break higher increases potential of long side.
Reasons against long side:
1) Any break of the current uptrend and a failure of the pattern would invalidate this setup.
2) Global news could affect the trend.
Just laying out the odds,which at the moment are in favor of the longside.That was also a nice increase in volume at the close today.Watch for the pivot trigger at 83.36 for a potential swing trade,or potential intraday action on this one.I’ll set targets later after we see confirmation of the move.No trigger, no trade.