SU Suncor / COS Can. Oil Sands

Suncor reported earnings, not surprisingly they were very good, exactly what the chart was suggesting. Here it is;

su 20112 Su 2011

The big charts is like most, 5 up followed by a correction that looks a lot like an incomplete a-b-c. Normal target is in the order of $50 or so in order to get symmetry (c=a) and get to the 50/60% retracement level (see detail chart). The pattern is pretty straightforward with the b as a triangle. (the triangle may be shorter than shown!). The stock at about $42 should therefore have about $8 potential.

Canadian Oil Sands is a different kettle of fish;

cos 2011 l  cos 20112

Notice that in the big picture both stocks look pretty much the same. However short-term COS has not really budged at all of the lows. Perhaps this has yet to happen but nevertheless it raises the caution flag! Last September we already expected the stock to start moving up , see chart below. So far the move is rather anemic which may be telling us something.

cos.un sept 2010

Use stops at around $22.