Sunoco LP’s Positive Outlook in Energy Sector

Sunoco LP (SUN) is making waves in the energy sector, achieving all-time highs even with limited market leadership. The stock seems poised to gain from potential increases in oil prices, supported by charts indicating a bullish trend. In fact, it surpassed its last resistance level from the 2014 peak back in March, marking a significant milestone.

The strength of the monthly MACD signals that SUN could continue advancing in the upcoming months. Forecasts suggest that it might reach a breakout target of around $78, which seems reasonable for the medium term. Additionally, there’s medium-term positive momentum in the weekly MACD, which is gaining as the histogram bar rises. While the weekly stochastics indicate overbought conditions, they also hint at a possible rally that might support the ongoing uptrend observed in the second quarter.

The previous resistance level has solid backing in the low $60s, and the 50-day or 10-week moving average could act as a trailing stop near $66. Compared to the S&P 500 Index, SUN is set to do better by 2026. This ratio appears to have nearly bottomed out over the last year, reversing a cyclical downward pattern with a notable break in the first quarter. Although SUN has regained some relative strength since the start of the year, that upward trend remains intact at the 200-day moving average, signaling a potential return to favor in the short term.

Overall, SUN’s upward momentum looks promising both absolutely and relatively. It’s likely that this breakout could provide a boost mid-year, possibly tied to ongoing strength in oil prices.