ENB drops as downward price move persists below key moving averages

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Enbridge drops 1.72% today to C$66.28

Highlights

Enbridge has started construction on its C$4 billion Sunrise Expansion pipeline in British Columbia, aiming to increase Westcoast system capacity by 2026.
Regulatory risk has increased after Enbridge received a violation notice from Wisconsin authorities for alleged environmental infractions during the Line 5 reroute project.
Shares of Enbridge trade below key moving averages, with technicals pointing to more downside and an expected range of C$65.33 to C$67.23 in coming days.

Pipeline build supports outlook as regulatory risks and investor selling emerge

Enbridge has begun construction on its C$4 billion Sunrise Expansion natural gas pipeline project in British Columbia, a development that boosts the capacity of the Westcoast system and reaffirms its 2026 dividend outlook and distributable cash flow coverage, according to Yahoo Finance. The Wisconsin Department of Natural Resources issued a notice of violation to Enbridge Energy Company, citing alleged environmental infractions during the Line 5 reroute project, which adds regulatory risk. Additionally, reductions in institutional holdings from Columbus Macro LLC and HBW Advisory Services LLC in the third quarter signal net selling activity among some investors.

Mixed momentum signals as price stalls under key resistance and MAs

On the technical front, ENB/CAD is trading below the MA-20 at C$67.12 and the MA-50 at C$66.39 on the hourly chart, with price also well below the long-term MA-200 at C$72.33 on the daily timeframe. The Ichimoku Kijun stands at C$67.13, marking immediate resistance. Momentum indicators present a mixed picture: MACD signals Strong Buy and ADX points to Buy, while RSI at 48.46 suggests low buying interest and Stochastic RSI is in oversold territory. CCI registers as neutral, and the Bull/Bear Power indicator shows buyers dominating intraday moves despite the session ending near the day's lows. A small positive gap of 0.31 was noted at the open, with moderate volatility and notable divergence between oscillators and price action.

Rangebound trading expected as downside probabilities outweigh rebound odds

In the short term, ENB/CAD is expected to fluctuate within the C$65.33 to C$67.23 range based on typical volatility. There is a 32% likelihood of an upward move, while the probability of further downside stands at 68%, supporting a baseline scenario of sideways movement within this corridor. A bullish breakout scenario would require a sustained move above resistance at C$67.13, while confirmation of renewed downside would come with a break and hold below support at C$65.33.

Anton Kharitonov, expert at Traders Union, sees Enbridge's technical setup as weak, with price trading below all key moving averages and momentum signals mixed. He believes recent project announcements support long-term cash flows, but notes persistent regulatory risk and net institutional selling are weighing on sentiment. Short-term volatility is likely to keep ENB/CAD contained between C$65.33 and C$67.23, with downside risk prevailing. "Until ENB regains C$67.13 on a closing basis, I remain defensive and see no clear long setup here."

Earlier, analysts noted that Enbridge shares were exhibiting continued bearish momentum amid ongoing expansion projects and heightened selling pressure. The latest developments, including regulatory concerns and declining institutional holdings, add further downside risk, making C$65.33 a critical support level for traders to monitor in the near term.

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.