Fairlead Strategies Idea Generator
Canadian Natural Resources (CNQ) & Updates (PBF, WWE)
We recommend taking profits in World Wrestling Entertainment (WWE) because it has short-term signs of upside exhaustion per the DeMARK Indicators® near our targeted level.
We are also tightening our stop-loss level in PBF Energy (PBF) to $40.20 from $36.50 in order to protect gains.
With recent strength in oil & gas exploration and production names, we highlight an appealing setup in Canadian Natural Resources (CNQ):
CNQ is nearing completion of a double-bottom pattern after finding support near $45. The rally off the September low broke through multiple resistance levels (e.g., daily cloud, 50- and 200-day moving averages) on strong momentum, and it appears to have enough fuel to overcome the highs near $58.
Longer-term, CNQ has a weekly MACD “buy” signal which should take it above the weekly cloud pictured below on newly positive intermediate-term momentum. The Canadian-listed stock (CNQ CN) has already broken above weekly cloud resistance and has surpassed its August highs.
With room to overbought territory per weekly stochastics, CNQ is targeting final resistance as defined by the all-time high near $69. We recommend setting a stop-loss at the bottom of yesterday’s gap higher, near $55.
Canadian Natural Resources (CNQ, $58.65):
Target: $69
Stop-Loss: $55
Great insights! Canadian OnG is experiencing record margins with improved efficiencies, rising commodity pricing and decoupling of Oil and Can/Us dollar exchange. Historically low PEs and high yields/dividends. Companies are sitting on $100B in capital for debt paydowns, dividends and share buybacks. Also watch Cardinal Energy.