Canadian Natural Resources (CNQ had a stellar Friday with a big move of 5%. However, the intriguing price level for me is right here. We can see the stock has been setting up higher lows for the last year. The push today to get back to the 40 WMA is good, but the real opportunity is getting a chance to buy the stock again at the previous breakout level.
There are a couple of other supportive clues on the chart. Whenever the SCTR goes above 30, the stock does pretty well. The Full Stochastic is trying to turn up here right at 40. When the stock turns up around 40 or 50 on the full stochastic, it is usually a bull market trait.
There are a couple of other nice clues on the chart. The volume rose this week and was well above average showing a large interest in this upside move. The PPO looks like it wants to turn up making a higher low. The real juicy part of this higher low is a turn up while it is still above zero. That is a very bullish setup.
As long as this week's low holds, I would stay bullish on the stock.
Here is the most recent Commodity Countdown Video. Some of the conversation is on the indexes and a large portion stares down the calamity in Commodities. I did share some important calendar dates for the US Dollar. I comment on Gold and Silver in the video.
I host a new TV show on StockCharts.com called The Final Bar. It airs Thursdays at 5 PM ET and is repeated throughout the week on StockCharts TV. You can also catch it on my Vimeo channel or on the StockCharts.com YouTube Channel.
The Final Bar covered some of the tension on the index charts. This edition also covered some of the value stocks in defensive industry groups.
For Canadian investors, here is a copy of the most recent Canadian Technician video.
Greg Schnell, CMT, MFTA
Senior Technical Analyst, StockCharts.com