TraderEye Market View: CNQ – Technical Analysis: Weekly Morning Star Formation

Wednesday, March 19, 2025

CNQ – Technical Analysis: Weekly Morning Star Formation

📊 Technical Event: Weekly Morning Star Reversal

Canadian Natural Resources Ltd. (NYSE: CNQ) has formed a bullish Morning Star candlestick pattern on the weekly timeframe, signaling a potential long-term trend reversal. This is a significant technical event, as higher timeframe patterns hold more weight and often indicate strong shifts in market sentiment.

📈 Attached: Updated Weekly Chart – Morning Star Formation

Understanding the Morning Star Pattern on a Weekly Chart

The Morning Star is a classic three-candle reversal formation, where:

The first candle is a strong bearish move, reflecting heavy selling pressure.
The second candle shows indecision, often in the form of a Doji or a small-bodied candle, indicating potential exhaustion of the prior downtrend.
The third candle is a strong bullish response, confirming renewed buying interest and a possible trend reversal.

In weekly charts, this pattern carries greater significance than in shorter timeframes, as it represents a shift in sentiment over multiple trading sessions, rather than just a single day.

📌 Key Levels to Watch:

Support Zone: The low of the Morning Star formation should act as a new demand area if the pattern is validated.
Resistance Target: A confirmed breakout above the recent swing high could fuel further upside momentum.
Volume Confirmation: Increased buying volume on the bullish candle strengthens the reliability of the pattern.

Market Outlook & Sector Analysis

CNQ operates within the energy sector, which has recently shown signs of renewed strength amid shifting macroeconomic conditions. Rising oil prices and demand fluctuations can directly impact the stock’s movement. If the bullish reversal holds, we could see further momentum toward higher price levels in the coming weeks.

Traders and investors should monitor follow-through price action and sector-wide sentiment to confirm sustained upside potential.

Legal Disclaimer

This analysis is for informational and educational purposes only and does not constitute financial or investment advice. The author is not a licensed financial advisor or portfolio manager. Trading stocks involves significant risk, and past performance does not guarantee future results. Investors should conduct independent research and consult with a qualified professional before making any trading decisions.

🚀 Will CNQ’s Weekly Morning Star signal a strong reversal? Stay tuned for further updates!

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