Suncor’s moving averages in the past couple of quarters
Suncor Energy (SU) stock has fallen 3% in the second quarter. Let’s begin by reviewing SU’s moving average trend in the past couple of quarters.
In the fourth quarter of 2018, Suncor’s 50 DMA (day moving average) fell due to the weakness in the stock. The fall in oil prices and a decline in the equity market impacted the stock. Suncor’s 50 DMA broke below its 200 DMA. When a shorter-term DMA breaks below a longer-term DMA, it is considered a technically bearish sign.
However, in the first quarter of 2019, Suncor stock and its 50 DMA recovered driven by improving equity markets and rising oil. However, Suncor’s 50 DMA continued to stay below its 200 DMA in Q1.
Suncor’s moving averages in the second quarter so far
At the beginning of the second quarter, Suncor’s 50 DMA stood quite below its 200 DMA. However, during the quarter, Suncor’s 200 DMA has decreased by 7.3%, whereas its 50 DMA has fallen by 3.9%. This led to the narrowing of the gap between both DMAs. Suncor’s 50 DMA, which stood 7.1% below its 200 DMA on April 1, is now 3.9% below its 200 DMA.
With a smaller gap of 4% between both DMAs, Suncor’s 50 DMA could soon cross over its 200 DMA, which would then be a positive breakthrough for the stock.