Don't Ignore This Chart!

This Stock Hit New 3 Month Highs


This pipeline business is a stable cash flow generator that also pays a healthy dividend of 6%. Enbridge is a large North American pipeline company with some projects in the works that should come on stream in 2019.

Looking at the setup, the SCTR is suggesting the price action is better than most of the stocks with a reading of 88. The relative strength made new 10 month highs. Price popped to a new 3-month high after capitulation selling volume marked the lows.

On the weekly chart it looks good too.

That nice fat dividend on Enbridge is worth looking at here.  Try to identify a good stop location like last weeks highs. The overall market is trying to work its way higher here. The 50-day moving average is in play now. As we move higher, it will be important to watch for overhead resistance starting at 2575 on the $SPX. With the high volatility, reversals could be sudden so continue to be defensive.

Good trading,
Greg Schnell, CMT, MFTA

Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at specializing in intermarket and commodities analysis. He is also the co-author of Stock Charts For Dummies (Wiley, 2018). Based in Calgary, Greg is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the CMT Association and the International Federation of Technical Analysts (IFTA). Learn More
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