Enbridge stock draws new institutional buyers: Can ENB maintain momentum?

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Enbridge gains 0.3% to C$69.11 today

Highlights

International Assets Investment Management LLC raised its stake in Enbridge by 1,585.9% in the third quarter, signaling substantial new institutional buying.
Hennessy Advisors Inc. increased its holdings in Enbridge by 8.2% in the third quarter, indicating continued institutional interest.
Enbridge stock is showing short- and medium-term bullish momentum with strong buy signals, expected to trade in the C$68.2 to C$70.02 range.

Institutional buying improves liquidity and investor sentiment

The most notable development is International Assets Investment Management LLC’s substantial increase in its stake in Enbridge by 1,585.9% during the third quarter, according to MarketBeat. This outsized position change represents major new institutional buying, which can improve liquidity and investor sentiment around the stock. Hennessy Advisors Inc. also raised its holdings by 8.2% in the third quarter, reflecting ongoing interest from institutional investors and helping to support the broader demand backdrop.

Buy signals strengthen as price holds above near-term support

On the hourly chart, ENB is trading above both the MA-20 at C$68.7 and the MA-50 at C$67.96, while remaining under the long-term MA-200 at C$72.53 on the daily timeframe. The Ichimoku Kijun is positioned at C$68.4, functioning as immediate support. MACD signals Strong Buy, ADX confirms a Buy setup, and both the RSI at 62.37 and CCI are generating buy indications. Stochastic RSI reads as neutral, suggesting there is limited overbought risk, while Bull/Bear Power points to intraday buyer strength. The Awesome Oscillator offers a neutral signal, adding little directional bias.

Sideways trading favored as upside probability remains high

In the short term, ENB is expected to trade within the C$68.2 to C$70.02 volatility band relative to current levels. The most likely scenario is sideways price action within this range. A break above C$70.02 would trigger a bullish extension, whereas a decline below C$68.2 would indicate new short-term downside pressure. The probability of a move higher remains very high, while the risk of a price decline is seen as low.

Anton Kharitonov, expert at Traders Union, sees the sharp rise in institutional positions as a notable vote of confidence for Enbridge, but remains cautious due to the stock's position below its long-term averages. Technical momentum is positive in the short term, though the overall setup still points to sideways trading between C$68.2 and C$70.02 for now. The analyst believes any sustained upside depends on clearing clear resistance levels. "Until Enbridge breaks above C$70.02 on convincing volume, I remain defensive and will not chase the move."

Earlier, analysts noted that Enbridge was exhibiting stable upward momentum, supported by technical factors and anticipation of upcoming catalysts. The significant increase in institutional holdings outlined above adds a new supportive element to the technical outlook, making sustained monitoring of any break above C$70.02 crucial for identifying a possible renewed uptrend.

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.