CANADIAN OIL SANDS (OTCMKTS:COSWF) perilous drop in the market continues to be a point of concern for investors as oil prices continue to hit all-time lows. Investors’ concerns have further been compounded by the fact that the company has no plans to cut its productions in the vast Northern Alberta projects.

Do analyst foresee a double-top for COSWF?

In contrast to the current market sentiments, Syncrude, and Canadian Natural Resources have announced plans to boost production in anticipation that economies of scale will result in a reduction in costs per barrel. With oil prices diving below the $45 a barrel mark, Canadian Oil and Sands could see its operating costs exceed Canadian crude prices.

Oil sand operating costs are currently at a high attributed to high energy intensity as well as the spiraling costs of labor in Canada’s North. A spokeswoman of the Canadian Oil Sands Ltd has already indicated that Syncrude will look to ramp up production amidst increasing costs rather than scale output.

CANADIAN OIL SANDS (OTCMKTS:COSWF) just like other oil sands giant remains optimistic about the future with no intentions of shutting down operations as focus shifts to generating cash from ongoing sales. A favorable exchange rate seems to have had a positive impact on the company’s returns as production costs continue to be paid in Canadian dollars while returns received in U.S dollars.

Technicals

The technical picture of CANADIAN OIL SANDS (OTCMKTS:COSWF) can easily be ascertained from the long term chart, which shows not a single bit of encouraging piece of information for the bulls. The downtrend, which had started in 2012, gathered a lot more bearish momentum in the last few months, resulting in a swift journey from $23 to $6. The recent candles indicate a probable bounce to $10 but that would be the best thing expected and nothing more.