Canadian Natural Resources (Friday’s close $41.67) declined from $49.08 to $30.11 (A-B) and then settled in a horizontal trading range mostly between $30 and $42 (dashed lines). During the “flash crash” in March, 2020, the stock collapsed to $9.80 (C), had a recovery rally toward the falling 40-week Moving Average (D – 40wMA) and then settled in a horizontal trading range mostly between $20 and $30 (dashed lines).
CNQ had a breakout from this second range recently and approached the upper part of the 2019 trading range (E). The 40wMA has also turned upward to signal a rising trend. A sustained rise above $43 would confirm higher targets.
There is good support near $35; only a sustained decline below $31-32 would be negative.
A rise above $43 would signal Point & Figure targets of $45 and $49. Higher targets are visible.
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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
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