Cenovus Energy: Technical Support Level At 20.83

Summary

  • 100% technical buy signals.
  • 11 new highs and up 14.32% in the last month.
  • 152.31% gain in the last year.
  • Consensus price target 21.00.

Reminder: I publish a chart each day of the stock that I feel has the best price momentum. Just because I feature that stock does not mean you need to buy it. There are times when you shouldn't buy anything and just sit on the sideline and accumulate cash. Today 77.68% of all stocks were trading below their 200 day moving averages. That should be a sign to use caution.

The Chart of the Day belongs to the crude oil producer Cenovus Energy (CVE). I found the stock by using Barchart's powerful screening function to find the stocks with the highest Weighted Alpha and technical buy signals then sorted that list by the most frequent number of new highs in the last month. I then used the Flipchart feature to review the charts for consistent price appreciation, Since the Trend Spotter signaled a buy on 4/27 the stock gained 14.21%. 

CVE Cenovus Energy

CVE price vs daily moiving averages 

Cenovus Energy Inc., together with its subsidiaries, develops, produces, and markets crude oil, natural gas liquids, and natural gas in Canada, the United States, and the Asia Pacific region. The company operates through Oil Sands, Conventional, Offshore, Canadian Manufacturing, U.S. Manufacturing, and Retail segments. The Oil Sands segment develops and produces bitumen and heavy oil in northern Alberta and Saskatchewan. This segments Foster Creek, Christina Lake, Sunrise, and Tucker oil sands projects, as well as Lloydminster thermal and conventional heavy oil assets The Conventional segment holds assets primarily located in Elmworth-Wapiti, Kaybob-Edson, Clearwater, and Rainbow Lake operating in Alberta and British Columbia, as well as interests in various natural gas processing facilities. The offshore segment engages in exploration and development activities. The Canadian Manufacturing segment includes the owned and operated Lloydminster upgrading and asphalt refining complex, which upgrades heavy oil and bitumen into synthetic crude oil, diesel fuel, asphalt, and other ancillary products, as well as owns and operates the Bruderheim crude-by-rail terminal and two ethanol plants. The U.S. Manufacturing segment comprises the refining of crude oil to produce diesel, gasoline, jet fuel, asphalt, and other products. The Retail segment consists of marketing its own and third-party refined petroleum products through retail, commercial, and bulk petroleum outlets, as well as wholesale channels. Cenovus Energy Inc. was founded in 2009 and is headquartered in Calgary, Canada. 

Barchart Technical Indicators:

  • 100% technical buy signals
  • 177.07+ Weighted Alpha
  • 152.31% gain in the last year
  • Trend Spotter buy signal
  • Above its 20, 50, 100, and 200 day moving averages
  • 11 new highs and up 14.32% in the last month
  • Relative Strength Index 63.17%
  • Technical support level at 20.83
  • Recently traded at 20.74 with a 50 day moving average of 17.54

Fundamental Factors:

  • Market Cap $41.73 billion million
  • P/E 15.28
  • Dividend yield .54%
  • Revenue is expected to grow 35.30% this year and decrease by 12.50% next year
  • Earnings are estimated to increase by 1,233.30% this year, decrease by 12.50% next year and continue to decrease at an annual rate of 17.83% to 20.00% for the next 5 years

Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:

  • Wall Street analysts issued 7 strong buy, and 11 buy opinions on the stock
  • A consensus price target is 21.00
  • The individual investors on Motley Fool voted 147 to 9 that the stock will beat the market with the more experienced investors voting 12 to 0 for the same result
  • 23,400 investors are monitoring the stock on Seeking Alpha

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the ...

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Mad Money 20 hours ago Member's comment

How do you feel about $CVE now?