Canadian Natural Resources had a breakout (A) as it moved above its 40-week Moving Average (40wMA) and broke out from a bullish technical pattern known as a “W” formation (dashed lines).
It reached a high of $46.74 (B) and then settled in a horizontal trading range mostly between $37 and $47 (dotted lines). The stock recently had a breakout above the top of this range to signal the start of a new up-trend (C). It then pulled back to support (D) and recently resumed the up-trend (E). Only a sustained decline below ±$43 would be negative.
Point & Figure measurements provide targets of $52 and $59. Higher targets are visible.
Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com