CNQ update

The stock has followed patterns to a T, see previous blogs. Now  mixed signals are showing up. Long-term the stock needs to go lower, much lower;

cnq june 2012

We should presently be going down in wave 3 of C, here at about $26. However the present leg appears to be close to completion which may indicate that it is only wave 1 of 3 of C. Here it is in more detail;

cnq june 2012 s

The drop from $41/42 to here is too short to be all of 3 (unless a very large wedge wave C is forming!). This last leg or fifth wave has all the hallmarks of a wedge that may or may not need one more minor push down after which the stock could rebound to, possible , as high as $35. The whole thing would look more like this;

cnq big wedge 2012

Time will tell but in the end the stock should get to below $19.