Suncor Energy Extends Rally With 7.60% 6-Day Gain As Technicals Signal Strength

Suncor Energy (SU) advanced 0.59% to close at CAD 39.09 on June 12, 2025, marking its sixth consecutive daily gain and bringing the 6-day advance to 7.60%. This analysis evaluates the technical posture using multiple indicators.
Candlestick Theory
Recent candlestick patterns show a consolidation breakout after a hammer formed at CAD 35.29 on May 30, followed by six consecutive white candles culminating near the April resistance zone of CAD 39.16. This suggests strong buying pressure, with immediate resistance at CAD 39.16–39.50 and key support established at the swing low of CAD 35.29.
Moving Average Theory
The price maintains a bullish posture above all major moving averages (50-day at CAD 37.40, 100-day at CAD 36.85, 200-day at CAD 37.80). The 50-day crossing above the 200-day in early May confirms a golden cross, reinforcing a long-term uptrend. Sustained trading above the 50-day SMA signals robust intermediate momentum.
MACD & KDJ Indicators
The MACD (0.68) remains above its signal line (0.62) with both trending upward, indicating sustained bullish momentum. However, the KDJ oscillator (K:89, D:86, J:95) shows overbought territory readings. While this doesn’t guarantee reversal, it suggests waning momentum and heightens sensitivity to pullbacks.
Bollinger Bands
Price currently trades near the upper band (CAD 39.25), reflecting strength after bands expanded sharply during the 7.60% rally. The 20-day Bollinger Band width contracted to 4% before the breakout, indicating a volatility squeeze resolution. Continued upper-band proximity may invite short-term profit-taking.
Volume-Price Relationship
Volume surged to 7.45M shares on June 9 (peak rally momentum) but declined to 3.12M by June 12 as prices extended gains—a bearish divergence suggesting weakening participation. The 6-day average volume of 5.97M shares moderately exceeds the 50-day average (5.42M), providing qualified support for the rally’s sustainability.
Relative Strength Index (RSI)
The 14-day RSI (73) has entered overbought territory, typically a cautionary signal. However, its relevance is tempered by the strong uptrend context where RSI can remain elevated during persistent rallies. This reading warrants monitoring for potential exhaustion but doesn’t alone dictate reversal.
Fibonacci Retracement
Applying Fibonacci levels to the CAD 35.29 (May 30 low) to CAD 39.13 (June 12 high) rally reveals key support at CAD 38.22 (23.6%), CAD 37.66 (38.2%), and CAD 37.21 (50%). Confluence exists at CAD 38.22, aligning with the June 5 swing high and the 50-day SMA—making it critical short-term support on pullbacks.
Confluence & Divergence
Strong confluence appears at CAD 38.22, where Fibonacci support, the 50-day SMA, and prior price highs converge. Notable bearish divergences include declining volume alongside rising prices and overbought KDJ/RSI readings amid upper Bollinger Band proximity. These suggest consolidation may develop near CAD 39.16 resistance, though the broader uptrend remains intact above CAD 38.22.