CENOVUS ENERGY INC (NYSE:CVE) showing some interesting technicals. Here's why.

CENOVUS ENERGY INC (NYSE:CVE) has been identified as a Technical Breakout Setup Pattern by our stock screener. This pattern typically occurs when a stock takes a pause after a significant rise, indicating the possibility of a continuation in the trend. While it's impossible to predict with certainty, it might be beneficial to monitor NYSE:CVE.

Technical analysis of NYSE:CVE

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

Overall CVE gets a technical rating of 8 out of 10. In the last year, CVE was one of the better performers, but we do observe some doubts in the very recent evolution.

• The short term is neutral, but the long term trend is still positive. Not much to worry about for now.
• Looking at the yearly performance, CVE did better than 86% of all other stocks.
• CVE is one of the better performing stocks in the Oil, Gas & Consumable Fuels industry, it outperforms 71% of 213 stocks in the same industry.
• CVE is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so CVE is lagging the market slightly.

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

How do we evaluate the setup for NYSE:CVE?

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:CVE currently holds a 8 as its setup rating, suggesting a particular level of consolidation in the stock.

CVE has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 21.21. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 20.49, a Stop Loss order could be placed below this zone.

Trading setups like NYSE:CVE

A breakout opportunity may arise when the stock surpasses the current consolidation zone and reaches new highs. Traders often wait for this breakout before considering buying the stock. To manage risk, a stop loss order could be placed below the consolidation zone to limit potential losses.

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents technical observations generated by automated analysis but does not guarantee any trading outcomes. Always trade responsibly and make independent judgments.

More breakout setups can be found in our Breakout screener.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.