Enbridge stock saw a welcome improvement to its Relative Strength (RS) Rating on Tuesday, with an upgrade from 66 to 73.
How To Invest In Stocks In Both Bull And Bear Markets
IBD's proprietary RS Rating tracks technical performance by showing how a stock's price action over the last 52 weeks compares to that of the other stocks in our database.
Decades of market research reveals that the stocks that go on to make the biggest gains typically have an RS Rating of over 80 as they begin their biggest price moves. See if Enbridge stock can continue to rebound and clear that threshold.
Is Enbridge Stock A Buy?
Enbridge broke out earlier, but has fallen back below the prior 47.44 entry from a cup without handle. In the scenario where a stock breaks out then falls 7% or more below the entry price, it's considered a failed breakout. If that happens, it's best to wait for a new pattern to take shape. Also understand that the most recent consolidation is a later-stage base, which makes it riskier to establish a new position or add shares to an existing one.
The Canadian-based energy structure company showed 12% earnings growth last quarter, while sales growth came in at 31%.
Enbridge stock earns the No. 4 rank among its peers in the Oil&Gas-Transportation/Pipeline industry group. Hess Midstream is the No. 1-ranked stock within the group.
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