Will Enbridge stock test resistance as Chatham pipeline expansion proposal advances?

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Enbridge rises 0.15% to C$79.04 today

Highlights

Enbridge Gas proposes a 12-inch, 28-mile pipeline in North Carolina, aiming to expand infrastructure and boost future cash flows.
Community opposition and land access disputes have escalated to litigation, increasing risks of regulatory delays and cost overruns.
ENB/CAD maintains strong bullish momentum, expected to consolidate between C$77.82 and C$80.26, with upside breakout potential above resistance.

Pipeline expansion faces legal opposition and regulatory risk

Enbridge Gas is advancing a proposal for a new 12-inch diameter, 28-mile natural gas pipeline in Chatham County, North Carolina, which could expand the company's regional infrastructure and potentially boost long-term cash flows if approved. The project, however, faces notable community opposition, raising the risk of regulatory delays and higher project costs that could impact its timing and profitability. To address access challenges, Enbridge has filed a lawsuit against local landowners who refused survey entry, formalizing local resistance and introducing heightened headline risk, according to Wunc.

Positive momentum as technical indicators confirm bullish bias

On the technical front, ENB is trading above its 20-period (C$78.53) and 50-period (C$78) moving averages on the hourly chart, and remains well above the 200-period moving average (C$71.13) on the daily timeframe. The Ichimoku Kijun on the daily sits at C$78.19, marking immediate support. Momentum tools paint a positive picture: the Moving Average Convergence Divergence (MACD) and Average Directional Index (ADX) both signal a Buy, while the Relative Strength Index (RSI) at 64, Stochastic RSI, and Commodity Channel Index (CCI) all indicate either bullish or overbought conditions. Bull/Bear Power also reflects dominant buying intraday; the Awesome Oscillator is neutral, offering limited additional confirmation.

Sideways trade likely as volatility boundaries limit direction

In the short term, ENB is expected to trade within a typical volatility band between C$77.82 and C$80.26. The base scenario is for sideways consolidation inside this range over the next several sessions. Upside scenarios may unfold if price decisively clears the C$80.26 resistance, while sustained selling below the C$77.82 support could define a short-term bearish phase. Currently, the probability favors price stability or further modest gains.

Viktoras Karapetjanc, analyst at Traders Union, sees Enbridge in a constructive position both fundamentally and technically. He believes the proposed North Carolina pipeline could support long-term growth despite community resistance and headline risks. The technical backdrop remains supportive, with bullish momentum and clearly defined trading ranges. In Karapetjanc’s words: "As long as ENB sustains above support, a gradual grind higher remains my preferred scenario, with eyes on regulatory developments for the next catalyst."

Earlier, analysts noted that Enbridge's stock demonstrated robust technical momentum and cash-flow resilience, supported by its diversified infrastructure and shareholder-friendly dividend policy. The current backdrop adds a new dimension as the company's North Carolina pipeline proposal introduces headline and regulatory risks, making management of project approvals the critical factor to monitor for any near-term shifts in stock sentiment.

Source of Data: ENB Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.