On May 14, 2021, ($41.67) we suggested initial targets of $45 and $49. These targets were fulfilled five months later and quickly exceeded as the stock reached a high of $88.18 in April, 2022 (A). After a correction to ±$60 (B) and a return toward previous highs (C) we suggested on Dec. 6, 2022, ($77.71) that Canadian Natural Resources CNQ-T (Wednesday’s close $91.68) was ready to resume the uptrend. However, the stock took a while longer to complete a large triangle pattern, which provided an even larger platform that supports significantly higher targets (dashed lines). The recent rise above the top of this pattern signalled a breakout (D).
Behaviour indicators including the rising 40-week Moving Average (40wMA) confirm the bullish status. Only a sustained decline below $81-82 would be negative.
Point & Figure measurements provide targets of $99 and $109. The large triangle pattern (dashed lines) supports higher targets.
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Monica Rizk is the senior technical analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart source: www.decisionplus.com
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