This gas stock just cleared a 2014 peak and is set to continue higher, says Katie Stockton
Sunoco LP (SUN) stands out as one of the more compelling long-term technical setups in the energy sector, breaking out to new all-time highs even as market leadership remains narrow. The stock stands to benefit from upside volatility in crude oil prices, and the charts confirm a bullish narrative. SUN cleared final resistance from the 2014 peak in March in a bullish long-term development. Momentum is strong per the monthly MACD, suggesting the stock can continue to trend higher over the next several months. A measured move projection from the breakout targets approximately $78, which is achievable over the intermediate term. SUN also exhibits positive intermediate-term momentum per its weekly MACD, and it is accelerating per the rising histogram bars. The weekly stochastics are overbought but have a ‘pop’ higher that supports a continuation of the prevailing uptrend in Q2. Former resistance puts strong support in the low $60s, though the 50-day, or 10-week, moving average (MA) can serve as a trailing stop near $66. Relative to the S & P 500 Index (SPX), SUN is positioned to outperform in 2026. The ratio carved out a rounded bottom over the past year, reversing its cyclical downtrend with a base breakout in Q1. SUN has given back some of the relative gains from earlier in the year, but the relative uptrend remains intact per the ratio’s 200-day MA, and the stock appears to be rotating back into favor near term. Overall, SUN’s uptrend appears healthy in both absolute and relative terms. We expect its breakout to act as a tailwind in the middle part of the year, likely associated with continued firmness in the price of crude oil. —Katie Stockton with Will Tamplin Access research from Fairlead Strategies for free here . DISCLOSURES: None. 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