Buy Score Rank #671 out of #5176
Wed 26'th Jul 2017
Cenovus Energy Inc Stock Analysis
Technical stock analysis for Wed 26'th Jul 2017
Buy candidate since 2017-07-24 Gain 6.69%
Cenovus Energy Inc has broken the very wide and falling short-term trend up. Firstly a slower falling rate is indicated, but this may very well be an early signal of a trend shift. On the reaction there will be support on the roof on the current trend broken, which is $7.42, a level that may pose a second chance to hit a runner. According to fan-theory $9.22 will be the next possible trendtop level and thereby pose a resistance level which may not be broken on the first attempt.
Only positive signals in the chart today. Cenovus Energy Inc holds buy signals from both short- and long-term moving averages. In addition, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down there will be some support from the lines at $7.66 and $7.51. A break down below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Friday July 21, 2017, which indicates further gains until a new top pivot has been found. Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and may be an early warning. The stock should be watched closely.
Relative Strength Index (RSI)
The stock holds a RSI14 at 79 and is currently being overbought on RSI. This does not have to be a sales signal as many stocks may go both long and hard while being overbought on the RSI. It is therefore important to evaluate the history of the share as it may tell you something about the RSI-sensitiveness.
Support & Resistance
Cenovus Energy Inc finds support from accumulated volume at . On the upside the stock meets some resistance just above today's level from accumulated volume at $8.25, $9.21 and $8.58.
The stock is about to test the resistance from accumulated volume at $8.25 and this may cause the stock to take a minor break or get into a more sideways move for a few days.
This stock is usually traded at good volume, and with minor daily changes the risk is considered to be low. During the last day, the stock moved $0.28 (3.54%) between high and low. For the last week, the stock has had a daily average volatility of 3.69%.
The stock is extremely overbought on RSI14 (79). Normally this will pose a good selling opportunity, but since the stock has broken the trend up the chance for a major correction due to high RSI is very small as the stock will find support at the trend broken.
Our recommended stoploss: $7.71 (-3.31%) (This stock has medium daily movements and this gives medium risk. The RSI14 is 79 and this increases the risk substantially. There is a buy signal from pivot bottom found 3 days ago.)
Several short-term signals are positive and the break-up from the falling trend indicates a possible shift for a trend. We believe that the prices around the breaking point will indicate particularly good levels, but we also believe that the current level will hold a possible good buy level for the short-term period. Due to some small weaknesses in the technical picture we have downgraded our recommendation for this stock since last evaluation from a Strong Buy Candidate to a Buy Candidate.
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