Enbridge Inc. (ENB) Resuming November Advance

Conclusion, Investment Implications, Strategy

Enbridge Inc. (ENB) appears to be resuming its November major uptrend amid coincident quarterly relative outperformance versus the benchmark S&P 500 (SPX). A sustained rise above the $38.19 area would help confirm this and would target an additional 11% rise to $44.00 per share. This is an Asbury Momentum trade idea.

Analysis and Rationale

Enbridge Inc. (ENB) operates as an energy infrastructure company. The company operates through five segments: Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, Renewable Power Generation, and Energy Services. The company was formerly known as IPL Energy Inc. and changed its name to Enbridge Inc. in October 1998. Enbridge Inc. was founded in 1949 and is headquartered in Calgary, Canada.

The upper panel of Chart 1 below plots ENB daily since January along with its 200- and 50-day moving averages, widely-watched major and minor trend proxies. The lower panel displays a corresponding daily relative performance chart of ENB versus the benchmark S&P 500 (SPX, blue) along with its 63-day moving average (green, quarterly, our Strategic time period).

Chart 1

The rightmost green highlights in the upper panel show that ENB appears to be resuming its November major uptrend, as defined by its 200-day MA, following the May 18th test of the 50-day MA. Meanwhile, ENB’s current trend of quarterly relative outperformance versus SPX as shown in the lower panel also appears to be resuming following a test of it on that same date. The other green highlight shows that the previous test of the Strategic relative outperformance trend on Feb 26th resulted in the resumption of the positive trends in both panels. A sustained rise above the 50-day MA, currently situated at $38.19, would help to confirm the outright uptrend has resumed and would target an additional 11% rise to $44.00 per share.

Table 1 below shows that considering the aforementioned upside target and a protective stop placed below the $38.41 area, a long entry price of $39.80 would provide a 1:3.0 risk/reward ratio (risking $1.00 to make $3.00) with an initial risk of 3.5%.

Table 1

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Please consult the table showing our Asbury 6 key market metrics to help determine if this investment is suitable for you.

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Enbridge Inc. (ENB) Resuming November Advance

Conclusion, Investment Implications, Strategy

Analysis and Rationale

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Enbridge Inc. (ENB) Resuming November Advance

Conclusion, Investment Implications, Strategy

Analysis and Rationale

Asbury Research

Asbury Research subscribers get more detail on our latest analysis, and updates to our quantitative models

Schedule A 15-Minute Zoom Meeting With Us To Get More Information >>>

Asbury Research subscribers get more detail on our latest analysis,
and updates to our quantitative models