Enbridge Inc. declined from US$59.19 to US$37.36 (A-B) below a falling trend-line (dotted line). In 2018, the stock built a bullish technical base known as a “W” formation (dashed lines).
It then moved above the neckline of the “W” pattern (shaded area) and simultaneously rose above the falling trend-line to confirm a breakout and the start of a new up-leg (C).
Enbridge rallied to a high of US$51.20 in April, 2019, pulled back and found support at ±US$43 (D), climbed to a high of US$57.32 (E) and is currently in the midst of a correction toward its 40-week Moving Average (40wMA).
There is good support at US$48-US$49; only a sustained decline below this level would be negative.
After the correction is complete, Point & Figure measurements provide targets of US$58 and US$63. The large “W” pattern supports higher targets.
stock
Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com