Is Buying Stock Like Enbridge Inc After Such Gap Up a Winning Strategy?

 Is Buying Stock Like Enbridge Inc After Such Gap Up a Winning Strategy?

The stock of Enbridge Inc (TSE:ENB) gapped up by $0.07 today and has $76.70 target or 36.00% above today’s $56.40 share price. The 5 months technical chart setup indicates low risk for the $51.14B company. The gap was reported on Nov, 7 by Barchart.com. If the $76.70 price target is reached, the company will be worth $18.41B more.
Gaps up are useful for using as a support level and to some extent as a tradeable event. If investors already hold the stock and experience a price gap up, then its usually a good idea to hold the stock for a stronger up move. Back-tests of these patterns indicate that two-thirds of the times the stock performance improves after the gap. The area gaps close 89% of the time, the breakaway gaps, 2%, the continuation gaps 4% and the exhaustion gaps 61%. About 451,070 shares traded hands. Enbridge Inc (TSE:ENB) has risen 12.00% since April 1, 2016 and is uptrending. It has outperformed by 10.05% the S&P500.

Enbridge Inc (TSE:ENB) Ratings Coverage

Out of 10 analysts covering Enbridge Inc. (TSE:ENB), 9 rate it a “Buy”, 0 “Sell”, while 1 “Hold”. This means 90% are positive. $71 is the highest target while $50 is the lowest. The $57.60 average target is 2.13% above today’s ($56.4) stock price. Enbridge Inc. has been the topic of 26 analyst reports since September 11, 2015 according to StockzIntelligence Inc. The rating was upgraded by Goldman Sachs on Friday, September 9 to “Buy”. The company was maintained on Friday, November 4 by TD Securities. The stock has “Outperform” rating given by RBC Capital Markets on Friday, September 2. The firm has “Overweight” rating by JP Morgan given on Tuesday, December 15. The company was downgraded on Friday, November 6 by National Bank Canada. Scotia Capital maintained the stock with “Outperform” rating in Friday, November 4 report. The company was initiated on Thursday, September 1 by Bank of America. National Bank Canada upgraded the stock to “Outperform” rating in Wednesday, September 7 report. The stock of Enbridge Inc (TSE:ENB) earned “Neutral” rating by Goldman Sachs on Wednesday, July 20. The rating was maintained by RBC Capital Markets on Thursday, January 21 with “Outperform”.

More notable recent Enbridge Inc (TSE:ENB) news were published by: Wsj.com which released: “Canadian Pipeline Operator Enbridge Posts Smaller Loss” on November 03, 2016, also Business.Financialpost.com with their article: “Enbridge Inc cuts 530 jobs, 5 per cent of work force in Canada, U.S.” published on October 19, 2016, Reuters.com published: “Canada’s Enbridge mulls up to $4.5 billion in extra divestitures” on November 03, 2016. More interesting news about Enbridge Inc (TSE:ENB) were released by: Fool.ca and their article: “Enbridge Inc. Is a Dividend-Growth King” published on November 02, 2016 as well as Fool.ca‘s news article titled: “This Could Be the Perfect Opportunity for Enbridge Inc.” with publication date: October 28, 2016.

Enbridge Inc. is an energy transportation and distribution company. The company has a market cap of $51.14 billion. The Firm operates through five divisions: Liquids Pipelines; Gas Distribution; Gas Pipelines, Processing and Energy Services; Sponsored Investments, and Corporate. It has a 39.54 P/E ratio. The Firm operates the crude oil and liquids transportation system in Canada and the United States.

ENB.TO Company Profile

Enbridge Inc. (Enbridge), incorporated on December 15, 1987, is an energy transportation and distribution company. The Firm operates through five divisions: Liquids Pipelines; Gas Distribution; Gas Pipelines, Processing and Energy Services; Sponsored Investments, and Corporate. The Firm operates the crude oil and liquids transportation system in Canada and the United States. The Firm is also involved in natural gas gathering, transmission and midstream businesses. It provides natural gas distribution services in Ontario, Quebec, New Brunswick and New York State. As a generator of energy, Enbridge has interests in over 2,200 megawatts (MW) of renewable and alternative energy generating capacity and is involved in holding its interests in wind, solar and geothermal power.

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