Suncor Energy Inc (NYSE:SU) Shows Strong Breakout Potential with High Technical and Setup Ratings

Technical breakout setups are a common method for traders aiming to profit from stocks showing strong momentum and consolidation patterns. The strategy uses two main metrics: the ChartMill Technical Rating, which evaluates a stock’s overall trend strength, and the ChartMill Setup Quality Rating, which spots good entry points within consolidations. Stocks with high scores on both metrics often offer promising breakout opportunities.

Suncor Energy Inc (NYSE:SU) currently matches this model, with a Technical Rating of 7 and a Setup Rating of 8, signaling both a steady uptrend and a clear consolidation pattern.

Technical Strength: A Steady Uptrend

The Technical Rating of 7 shows SU’s strong trend dynamics:

• The long-term trend is positive, while the short-term trend is neutral, indicating the stock is consolidating within a larger uptrend.
• The stock is trading in the upper half of its 52-week range, matching the S&P 500’s position, which shows relative strength.
• Moving averages (20-day, 50-day, and 100-day) are trending upward, supporting the bullish structure.

A crucial part of breakout trading is confirming the stock is in an uptrend—SU’s Technical Rating verifies this, making it a candidate for continued moves. For more details on the technicals, check the full technical report.

Setup Quality: A Consolidation with a Possible Entry Point

The Setup Rating of 8 points to SU’s current consolidation, which often comes before a breakout:

• Prices have stayed between $37.55 and $40.22 over the past month, forming a base.
• A recent Pocket Pivot signal (a bullish volume/price pattern) hints at accumulation.
• Support levels at $37.44 (daily) and $33.81 (weekly) offer downside protection, while resistance is near $40.11.

The setup suggests a potential breakout above $39.48, with a stop-loss just below $38.55, keeping risk to ~2.36%. Tight consolidations like this often lead to strong moves when resolved.

Why This Matters for Breakout Traders

Breakout strategies depend on two key factors:

1. Trend confirmation (Technical Rating ≥7) to ensure the stock is in a favorable position.
2. Tight consolidation (Setup Rating ≥7) to spot low-risk entry points.

SU meets both criteria, offering a balanced risk/reward scenario. While no setup is certain, the mix of trend strength and a clear base improves the chances of a successful trade.

For more breakout opportunities, visit the Technical Breakout Setups Screen.

Disclaimer: This analysis is for informational purposes only and should not be seen as investment advice. Always do your own research and consider risk management before trading.