Suncor Energy Inc. (NYSE: SU) — Following the recent merger with Petro-Canada, this company became one of Canada’s largest oil and gas producers.
On Jan. 31, the Trade of the Day said, “Technically, SU broke from a saucer formation on Friday [Jan. 28], with a long-term target of $50 and a trading target of $45.”
SU is approaching that target, so traders may want to take a quick profit or enter a close trailing stop. However, long-term buyers should hold for higher prices, but may experience increased volatility.
Why is SU a good long-term hold? The company is focused on Alberta’s vast Athabasca oil sands. Compared with other international oil companies, SU is not only safe from problems in the Middle East, but its profit margins increase greatly when oil rises above $80 per barrel — making it a great hedge against rising prices due to Middle East tensions.
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