Suncor Looks for Support

Sep 4th, 2008 – Comment

Lou, I was looking at a chart of Suncor today and saw that some time near the end of May the price dropped from over $120 to just over $60 in one shot – what happened? Was there a stock split that I have forgotten about in my old age? What do you see for […]


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Lou Schizas is an equities analyst, investor, entrepreneur, professor and television and radio personality – and a true believer in the happiness-inspiring powers of capitalism.


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Looking for Support

Looking for Support

Lou,

I was looking at a chart of Suncor today and saw that some time near the end of May the price dropped from over $120 to just over $60 in one shot – what happened? Was there a stock split that I have forgotten about in my old age? What do you see for this company going forward?

Keep well my young friend,
Zeke

Hi Zeke,

Thanks for writing. The one thing I always remind myself as I get older, I’m currently 52 years old, is that 80% of the wealth in most societies is held by people my age older and the best part of associating with people who have money is how they treat you when you visit!

Suncor 3 Year

Suncor 3 Year

Suncor can't mess with Texas

Suncor can't mess with Texas

Suncor Energy Inc., SU TSX, did split its stock 2 for 1 back in May so there was an adjustment in the price. I’m not sure which chart service you use but give stockcharts.com a shot they produce split adjusted charts that are more informative.

SU has been selling off since June of 2008 and looks to be trying to hold onto support at $52.50. It bounced off support in August to $60.00 then sold off as oil broke lower as Hurricane Gustav caused much less damage than expected.

The MACD generated a sell signal in June of 2008 and isn’t suggesting a turn at this time although there is good support at these levels. I would say that as oil prices go so goes SU. Watch the price of oil and the MACD for signals on the direction of Suncor. From where I sit this looks like a pull back more than a full scale retreat.

Happy Capitalism!

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