Suncor broke above it's July highs 5 weeks ago. Let's check the chart.
Well, considering Suncor broke out mid to Late July, it sure hasn't done much. The stock appears stuck between $31- $32.50. The rate of Change at the bottom is still above zero, but struggling. The MACD has flattened and the RSI has not made it back above the 70 RSI to start a new bull run. This weakness or delay is especially odd, with crude rising almost every day.
The fact that the rise in crude isn't helping to drive the stock higher off a low base like Suncor's is troubling. While we continue to make higher highs and higher lows, it does feel weak. Maybe Suncor can bounce off the 200 DMA at start a stronger ascent.
The declining volume may just be the summer swoon, but we are looking for a celebration of higher prices in this stock. Suncor is not supposed to be a stock having a nap in a August hammock!
Crude is at a critical level here. I'll blog on that tomorrow.
Greg Schnell, CMT
