Here’s 2 Oil and Gas Stocks Scott thinks you should watch for a Pullback on. $SU $CVE – April 28, 2022SU CVE
This is Scott with your Chart of the Day. I actually want to look at two oil and gas charts that I think are worth keeping on a watch list for you.
The first one is Suncor Energy ( NYSE: SU ). Now, Suncor ( NYSE: SU ) had a monster move today, up 12 percent off of yesterday, a monster move for an oil and gas stock. The reason this stock had a big move is that an activist hedge fund not only announced a stake in the company, a 3.4 percent stake, but they also had a letter of things that they want the company to do.
They think that this company has about a 50 percent upside, so the market liked that news. Really big volume here today, some of the biggest volume this stock has had, if I zoom out, in months. And it is always, throughout this entire market volatility, remained in a pretty good uptrend. It’s already in an uptrend, had some good news today, and moved out of a nice long consolidative base on heavier than average volume. So this, in my opinion, is a stock you want to watch for a pullback to the moving averages.
Now as you know, breakouts in this market have been tough to buy, it’s been hard to buy breakouts. Trust me, I’m a breakout buyer. And a lot of breakouts, I have noticed, have failed. So I have been forced to buy stocks close to some key moving averages.
That is what I think we should do here with Suncor ( NYSE: SU ). Watch for a little bit of a pullback, Dan Fitzpatrick calls this a Phase 1 breakout, and then you have a Phase 2 pullback to the moving averages. And then you get kind of a lower-risk entry closer to support.
So that is what I would look for here on Suncor ( NYSE: SU ). I probably wouldn’t want to buy it here today, even if it goes up again tomorrow you are kind of chasing a little bit. So I would look for a pullback maybe to the gray line here, which is the 21-day exponential period moving average.
Another oil and gas stock I think is worth watching is Cenovus ( NYSE: CVE ). Now, Cenovus ( NYSE: CVE ) had a big move off of the 21-day. And then in the last 2 sessions, it is up almost 14 percent. So again, with this one, you will probably want to watch for a little bit of a pullback to support and then start building an entry close to the moving averages.
These are 2 stocks that are in well-defined uptrends and moving on higher than average volume and are above all of their major moving averages. Those kinds of stocks, in my opinion, are pretty hard to find in this market, and that is why I think you should keep Cenovus ( NYSE: CVE ) and Suncor ( NYSE: SU ) on a watch list.