Enbridge shares gain around 1.5% after C$4 billion Sunrise Expansion project starts

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Enbridge rises 1.57% today to C$67.49

Highlights

Enbridge has commenced the C$4 billion Sunrise Expansion in British Columbia, which will expand natural gas capacity by 300 million cubic feet per day.
Enbridge maintains its 2026 dividend guidance with distributable cash flow projected to cover dividends by 1.51 times in 2025 and a dividend yield near 5.8% to 5.9%.
Shares of Enbridge trade above short-term averages but remain under medium- and long-term pressure, with negative technical signals suggesting a high probability of a downward move within a C$66.46 to C$68.52 range over the next five sessions.

Pipeline expansion and dividend coverage bolster cash flow outlook

Enbridge has begun construction on the C$4 billion Sunrise Expansion project in British Columbia, adding 87 miles of pipeline and expanding the Westcoast natural gas system's capacity by 300 million cubic feet per day. The company reaffirmed its 2026 dividend guidance with distributable cash flow expected to cover dividends by 1.51 times in 2025. Enbridge recently reported second-quarter revenue of CAD 29.32 billion and net income of CAD 1.57 billion, with a dividend yield around 5.8–5.9%.

Anton Kharitonov, expert at Traders Union, views Enbridge’s recent gains as fragile against the backdrop of continued technical weakness. He notes the price is still capped by the 50- and 200-day moving averages, and short-term momentum remains negative despite the Sunrise Expansion news. The company’s distributable cash flow and dividend coverage are a positive anchor, but insufficient against medium-term bearish pressure. Key indicators such as MACD and RSI confirm the downside bias, with overbought signals hinting at limited room for further advances. "I see more risk than opportunity for now — any upside in ENB looks likely to be sold into unless resistance at C$67.5 breaks decisively."

Viktoras Karapetjanc, expert at Traders Union, believes Enbridge’s initiation of the Sunrise Expansion project underlines management’s focus on long-term growth. He emphasizes the company’s stable fundamentals, especially strong dividend guidance and impressive cash flow coverage. Karapetjanc sees the elevated yield and continued pipeline expansion securing robust investor interest. Technical resistance exists, but bullish structure remains intact over the medium term as further infrastructure investments proceed. "Enbridge is building a foundation for renewed upside — I expect this operational progress to unlock new opportunities for shareholders."

Parshwa Turakhiya, analyst, sees ENB locked in a tight technical range with short-term sentiment driven by the expansion news. He highlights that momentum oscillators still point to caution, while pockets of intraday buying create fleeting setups for nimble traders. Trading between C$66.46 and C$68.52 is likely in coming sessions, with a breakout from this zone offering the next signal. "For those watching ENB, the key is to stay agile — sideways moves dominate but volatility could spark a fast trade on either break of C$67.5 or C$67.44."

Bearish momentum persists as short-term gains face strong resistance

ENB has moved above its 20-day moving average at C$66.67, but stays constrained below the 50-day at C$68.58 and well under the 200-day at C$72.34, confirming short-term momentum but ongoing medium- and long-term selling pressure. The immediate technical range is defined by resistance at C$67.5 and support at C$67.44, with the broader trend remaining bearish. Momentum signals remain negative: the MACD and ADX both point to further downside. The Relative Strength Index (RSI) stands at 43.8 and the Stochastic RSI at 65.35, both providing sell signals, while the CCI is neutral. Bull/Bear Power (BBP) shows buyers narrowly in control during intraday trading, although overbought readings suggest caution for further upside.

In a recent review, Enbridge shares were highlighted for technical strength and increased trading activity suggesting the potential for an upside breakout. The current analysis signals a shift to a more bearish scenario, with downside risk dominating and a break below C$67.44 likely to drive further weakness.

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

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