CNQ, Canadian National Resources.

cnq b cnq m

CNQ is like so many others, except a little clearer even. You have to look at the chart and then it is not that difficult to conclude that , if this stock were actually to regress to the mean, it could easily make it to $10 . In fact, it is not far-fetched at all as regressing to the mean is as normal as the rising in the morning.

In EW terms it gets pretty compelling. The rally after the lows of March is ,without a doubt, an A-B-C shown in a stylized way to make the point. It has given back almost 40% of its value and about 60% of the rally. It may go a little lower just to get to the B-wave level but should get a solid bounce soon (decent here means almost $10). Then the regression will continue! A sell at $41 if it gets there!