XLE is seeing a bullish crossover on the macd on the daily timeframe and holding pivot support. I believe we can see a bounce off these levels and test the previous high. With reopening in focus and strong performance in energy in the recent week (also earnings of big energy names such as XOM on friday) we can see a potential quick rise in energy stocks.
Potential downside idea for Suncor Energy. If the tide shifts to bearish for usoil we can see downward pressure on energy stocks such as suncor and perhaps a movement to the lower end of the channel
With the Suez Canal blockage oil could see further strength moving into next week as supply experiences disruptions (limited supply leads to gains in oil). XLE could see a continued bounce off the trendline support and move to fill the gap denoted by the "X"
As Suncor approaches a previous area of resistance this area can offer up support and potentially reversal at this area. Depending on the severity of the selling pressure we may see a break down of the upward channel and head back to major support levels (smart to have a stop loss in case it does). However if this decline in share price is transient we can see a...
Suncor potential upside to 24 dollar range (~10%). The idea is based on trend but also the prospect of a stimulus bill sending stocks into a Christmas rally early next week. Cheers!
Buy Price: 22.41
Sold: __________
