Enbridge (ENB-T, Monday’s close $67.58) declined from $59.69 in 2022 to $42.75 in 2023 (A-B) while trading below a falling trendline (dashed line) and below its falling 40-week Moving Average (40wMA). The stock rallied above these indicators in May 2024 (C) and started a sharp rise that culminated with a high of $65.62 in January (D). Enbridge was overbought at that time and far above its 40wMA; it then settled in a horizontal range mostly between $59 and $65 (dotted lines), which provided the average with time to catch up to the price. The recent advance above the top of the trading range signaled a breakout and the resumption of the long-term uptrend (E).
Behaviour indicators including the rising 40wMA and the rising trendline (solid line) confirm the bullish status. There is good support near $63-64; only a sustained decline below this level would be negative.
Point & Figure measurements provide targets of $74 and $79. Higher targets are visible.
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Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart source: www.decisionplus.com