A technical analysis of CENOVUS ENERGY INC.

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.

Deciphering the Technical Picture of NYSE:CVE

Every day ChartMill assigns a Technical Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple technical indicators and properties.

We assign a technical rating of 9 out of 10 to CVE. Both in the recent history as in the last year, CVE has proven to be a steady performer, scoring decent points in every aspect analyzed.

• Both the short term and long term trends are positive. This is a very positive sign.
• When comparing the yearly performance of all stocks, we notice that CVE is one of the better performing stocks in the market, outperforming 84% of all 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 64% of 213 stocks in the same industry.
• In the last month CVE has a been trading in the 19.78 - 21.08 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

Our latest full technical report of CVE contains the most current technical analsysis.

How does the Setup look for NYSE:CVE

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NYSE:CVE exhibits a 10 setup rating, indicating its consolidation status in recent days and weeks.

CVE has an excellent technical rating and 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 20.77, 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. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading setups like NYSE:CVE

One strategy to consider is waiting for the actual breakout to occur, where the stock breaks out above the current consolidation zone. Traders can then enter a buy position, anticipating further upward momentum. As a risk management measure, it is advisable to set a stop loss order below the consolidation zone.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.