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Fan Yang

Anticipating Support in Sunoco (SUN)

Before 2017, Sunoco (SUN) was bearish, falling from a height of around 60 in 2014 to a low of about 21 by late 2016. Then, at the end of the year and into the beginning of 2017, it started to trade sideways and eventually mount a bullish reversal attempt that might still be developing. Let's take a look at the chart.

Sunono (SUN) Daily Chart

(click to enlarge)

Bullish Reversal?
- There are some signs of bullish reversal, though we might want more confirmation.
- First of all, note that SUN has made at least one higher lower and now a higher high. This could be the start of an uptrend.
- There was a common support around 31.50, which Sun broke above in July. 
- Price is back above the 200- and 100-day simple moving averages (SMAs) and if it stays above these SMAs, we would have more bullish confirmation.
- In terms of the RSI, it has pushed above 70, and if it can hold above 40, it would be a good sign of continuing bullish momentum.
- SUN has been retreating after breaking the critical 31.50 resistance. Still the breakout still opened up the 34.50 and then 37.30 resistance pivots. 
- Now, if price can hold above 27.00, I think the bullish outlook still looks good. If price slips below, it becomes less clear. 
- Right now, we can see some reaction at 30.00, but maybe there is some momentum to bring price below this psychological level.
- I would look for support in the 28-29 area because there will be many support factors around. If so, the outlook remains bullish towards 34.50 and 37.30.