CANADIAN NATURAL RESOURCES is showing promising signs of setting up for a breakout.

Our stock screener has spotted CANADIAN NATURAL RESOURCES (NYSE:CNQ) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NYSE:CNQ.

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

ChartMill assigns a Technical Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple technical indicators and properties.

Taking everything into account, CNQ scores 8 out of 10 in our technical rating. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, CNQ is only an average performer.

• 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 overall good ranking is mostly due to the recent strong move.
• CNQ is an average performer in the Oil, Gas & Consumable Fuels industry, it outperforms 63% of 217 stocks in the same industry.

Our latest full technical report of CNQ contains the most current technical analsysis.

Why is NYSE:CNQ a setup?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NYSE:CNQ has a 9 as its setup rating, indicating its current consolidation status.

Besides having an excellent technical rating, CNQ also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. 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 61.08, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

How can NYSE:CNQ be traded?

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 is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.