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Suncor Energy (SU) in a Bullish Breakout

Suncor Energy (SU) has been sideways with a slight bearish bias throughout 2017. After finding support at 28 in July, SU rallied sharply. This bull run would be a continuation of the bull run started in 2016

SU Daily Chart

(click to enlarge)

Bullish Continuation:
- The daily chart shows that after a bull run in 2016, price started to trading in a sideways/slightly bearish consolidation.
- However, after finding support at 28, the July rally was able to push price above the June and May high, technically killing the bearish mode, where price highs and price lows were getting lower. Now we have at least a price high above the previous.
- Also, price has broken above and bounced off the 200- and 100-day simple moving averages (SMAs).
- The RSI has pushed above 70, which reflects initiation of bullish momentum. 
Channel Resistance:
- Since the financial crisis, SU has been trading relatively sideways as we can see on the weekly chart.
- Therefore, we should first limit the bullish outlook for SU. 
- I think the most aggressive bullish outlook at the moment should be limited to 40. Even at 40, price would have cracked the projected channel resistance see on the weekly chart, so we might have to be a bit conservative and anticipate resistance around 39. 
- At this point, 30.50 is a key pivot. A break below it would invalidate the bullish outlook towards 39, 40. 
- If price retreats, we should anticipate support above 30.50 ie. around 31.50.

SU Weekly Chart

(click to enlarge)