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Cenovus Energy Rises, Eyeing New Highs

Cenovus Energy (CVE), one of Canada's leading integrated oil and gas companies, rose over 2% in its stock price yesterday. This uptick came as the West Texas Intermediate (WTI) oil price approached the significant milestone of $90 per barrel. In this article, we'll delve into the recent surge of CVE's stock, its journey to new highs for the year, and its potential to surpass last year's peak of $31.19. Additionally, we'll analyze the technical aspect of CVE's monthly chart, which hints at a long-term bull flag formation and the key $30 resistance level that traders are closely monitoring.

A Stellar Year for CVE

Cenovus Energy has had quite a remarkable year, with its stock price steadily climbing. The recent 3% increase in CVE's stock price served as another testament to the company's robust performance in the energy sector. This positive momentum has been largely influenced by the surge in oil prices, particularly the WTI benchmark, which was nearing the $90 per barrel mark.

Approaching Last Year's High

The current rally in CVE's stock price brings it close to its highest point of the previous year, which stood at $31.19 per share.

Technical Analysis: Bull Flag Formation

Taking a closer look at the monthly chart of Cenovus Energy, a compelling technical pattern emerges—the formation of a long-term bull flag. A bull flag is a chart pattern that typically signifies a continuation of an existing uptrend. In CVE's case, this formation suggests that the stock may be in for a sustained period of growth.

The Top Resistance Level

Within this bull flag formation, there's a critical resistance level that traders and investors are keeping a keen eye on—the $30 mark. The $30 resistance level is pivotal because if CVE can break through this barrier, it could potentially unleash a significant upward move. Breaking out of this bull flag and surpassing $30 would not only signify a strong technical breakout but also set the stage for CVE to achieve new highs.

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