Suncor Energy Inc. (NYSE: SU ) - The recent merger with Petro-Canada made SU one of Canada's largest oil and gas producers. It is focused on Alberta's vast Athabasca oil sands, making it independent of operations outside of North America.
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 hedge against rising prices due to Middle East tensions and one of our top stock picks.
On Jan. 31, the Trade of the Day said, "Technically SU broke from a saucer formation … with a long-term target of $50 and a trading target of $45."
And on Feb. 17, at just under $45, the Trade of the Day said, "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."
But following a round of profit-taking and panic selling, SU is again approaching a buy point. Buy SU at $39 or under for a quick trading bounce to the gap at $44 or as a long-term hold.
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