There are signs that NYSE:CVE may be ready to breakout.

Our stock screener has identified CENOVUS ENERGY INC (NYSE:CVE) as a potential breakout candidate. This technical breakout setup pattern occurs when the stock consolidates after a strong uptrend. While the actual breakout is uncertain, it may be worth keeping an eye on NYSE:CVE.

Analyzing the Technical Aspects

ChartMill employs a sophisticated system to assign a Technical Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple technical indicators and properties.

We assign a technical rating of 7 out of 10 to CVE. In the last year, CVE was one of the better performers, but we do observe some doubts in the very recent evolution.

• The short term is neutral, but the long term trend is still positive. Not much to worry about for now.
• Looking at the yearly performance, CVE did better than 80% of all other stocks.
• CVE is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so CVE is lagging the market slightly.
• CVE is an average performer in the Oil, Gas & Consumable Fuels industry, it outperforms 63% of 213 stocks in the same industry.

Check the latest full technical report of CVE for a complete technical analysis.

Looking at the Setup

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:CVE this score is currently 8:

Besides having an excellent technical rating, CVE also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 21.09. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 20.20, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for CVE in the last couple of days, which is a good sign.

How to trade NYSE:CVE?

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

Of course, there are many ways to trade or not trade NYSE:CVE and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

More breakout setups can be found in our Breakout screener.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.