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Cenovus Energy declined from $39.64 in 2012 to $28.32 in 2013 (A-B) and then settled in a horizontal trading range between $28 and $32.50 (dashed lines).

In early 2014, the 40-week moving average (40wMA) started to rise, and the price rallied above this average and above the trading range indicating a bullish investor sentiment and the start of a new up-trend (C).

Technical indicators including the rising 40wMA and the MACD (lower panel) confirm the bullish status. A minor pullback may occur, but only a decline below about $31 would cancel the current upside potential.

Point & Figure measurements provide targets of $39 and $44. Higher targets are visible.

Ron Meisels is a contributor to the www.NA-marketletter.com website and Tweets at @Ronsbriefs. Monica Rizk is the senior technical analyst for Phases & Cycles Inc. (www.phases-cycles.com). They may hold shares in companies profiled. Please see the site for a glossary.

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