thiluxan_s

ENBRIDGE Trade Setup - Daily

TSX:ENB   ENBRIDGE INC
Chart speaks for itself.

Note the amount of times the price has tested the moving averages.
Me personally i don't like trading these middle zones and will wait for further confirmation of better low-risk high reward plays.

Things to note:
Still trading underneath a death cross.
We've been on a bullish rally for over 2 months now hence why I am not in a rush to buy unless i see certain key zones broken.

When I will buy:
I'm looking for a bullish breakout and daily candle bodies to close and catch support above the 200MA.
or
Price dumps here and then I'll purchase much cheaper upon capitulation. ENB is a long-term hold for me anyways.

Not trading advice, just my opinion. Safe trading, cheers.
Comment:
We broke down from previous trend line but upward channel is still intact.

Still trading udnerneath daily death cross.
RSI neutral.

Got rejected from 50EMA and now sitting on the bottom trend line of the channel.
That means upward targets are still in-play but considering where price action is right now, a break down is possible.

Possible bounce targets displayed.


Things to look for:
How the market opens this week could really indicate the possibility of a trend reversal.

Volume spikes during sell-offs have usually led to lower prices as indicated by the circles on the chart.
Since we're already at the bottom trend line of the channel it'd be interesting to see whether price holds or not.

According to RSI&EMA indicator, RSI has gotten rejected from EMA twice already. A candle body close above $43 could indicate a low-risk trade to the upside.

Comments

hi, what would your entry be if it drops? My entry would be 38.15 based on Fib levels of 61.8. Your thoughts?
+1 Reply
thiluxan_s joshi04
@joshi04, Hey in my opinion 38.15 is a great buy zone if it drops from here. I personally think that would be a great long-term investment entry especially for a stock like this. There's been a lot of profiting in the stock market so a pullback might be due. Only thing that has me skeptical whether we drop or not is the amount of volume at these price levels which is why we may possibly still rally if we hold the current price or even close above $43, unless the entire market takes a hit and signals a sell-off. Good luck!
Reply
maple_leaf joshi04
@thiluxan_s I am planning to buy 2k worth of stocks. What entry point will you recommend? Late 38 or 39?
Reply
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