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By Mill Chart

Last update: Aug 22, 2023

Our stock screener has detected a potential breakout setup on CANADIAN NATURAL RESOURCES (NYSE:CNQ). This breakout pattern is observed when a stock consolidates following a strong upward movement. It's important to note that this pattern is based on technical analysis, and the actual breakout outcome is uncertain. However, it might be worth keeping an eye on NYSE:CNQ.

CNQ Daily chart on 2023-08-22

What is the technical picture of NYSE:CNQ telling us.

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

We assign a technical rating of 8 out of 10 to CNQ. Although CNQ is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

  • Both the short term and long term trends are positive. This is a very positive sign.
  • CNQ is currently trading near its 52 week high, which is a good sign. The S&P500 Index is trading in the upper part of its 52 week range, but not near new highs, so CNQ is leading the market.
  • In the last month CNQ has a been trading in the 58.25 - 62.24 range, which is quite wide. It is currently trading near the high of this range.
  • Prices have been consolidating recently, this may present a good entry opportunity.
  • When comparing the yearly performance of all stocks, we notice that CNQ is one of the better performing stocks in the market, outperforming 81% of all stocks. However, this relatively good performance is mostly due to a recent big move.
  • CNQ is an average performer in the Oil, Gas & Consumable Fuels industry, it outperforms 63% of 217 stocks in the same industry.

Check the latest full technical report of CNQ for a complete technical analysis.

Looking at the Setup

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NYSE:CNQ currently holds a 9 as its setup rating, suggesting a particular level of consolidation in the stock.

CNQ has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 61.92. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 61.04, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading setups like NYSE:CNQ

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

Disclaimer: This article is not intended to provide trading advice. It is crucial to conduct your own analysis and consider your own observations and trading style when making investment decisions. The article solely presents technical observations and should not be relied upon as a sole basis for trading.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.