Suncor Energy Inc. (NYSE:SU)Q: Brian, What a rookie move !! I'm in at 7,500 shares of Suncor at an average price of $ 31.60. I missed your trend alert in June and continued buying just until last week. So.......what is your outlook ? I know you are not supposed to give direct personal advice but give me a clue. Hang on tight for a rough ride the next coming months or just cut my losses and go home and lick my wounds. Your input is SOOOOO MUCH appreciated as always !! Thank you ! Gerrette
A: As you know we issued a Downtrend on June 17th at $30.88 right as the stock tested the 50-day moving average, which it subsequently broke. The stock is now trying to find support right around the 200-day moving average which is currently at $24.70. SU will trade in sympathy with the price of oil in the near term, which has been in a corrective phase as it likely got ahead of itself running from $30 to $70 per barrel in such a short time period. But keep an eye on that 200-day moving average for a breakdown below which will invite some additional sellers.