PONY Can Go Either Way - Wait for the BreakDumped hard from the top of the rising wedge I outlined in my last analysis. Has found some support at one of the previous key demand areas, which coincides with the 78.6% retrace. Looks to have formed a flag now, which can break either way. RSI is near oversold on the daily, but the 4h Stoch is forming a bearish cross. If I had to bet, I'd guess it's going to break down toward the lower support line, but its safer to wait and see how it plays out.
Oilandgas
AMLP Offers Attractive Entry PointShares of the AMLP, which tracks a basket of MLP's (master limited partnerships), has been a stellar holding since mid-April both in terms of price and total return, thanks to its rich 7.8% dividend (at current prices).
This advance has now pulled back to the 61.8% retracement , which is ideal for a continuation of the advance. I've been aggressively buying over the past few months and have done quite well it it, but now it's offering an opportunity for more buying.
Mind you, this is not a trading vehicle. It's a long-term holding that you want to reinvest dividends (unless you're retired and looking for dividends as a payment). In addition, it's the perfect ETF to sell covered calls against, again, something I've been doing to increase the yield of my investment. On that point, try to stick with near-dated contracts because an unforeseen spike in oil could make this thing rally hard, thus eating away any premiums you collect selling calls against in.
In short, I'm a buyer (and already a holder of a sizeable position), and I'll be adding today on this pullback to the 61.8% retracement. It's also showing oversold readings on the R.S.I., suggesting a bounce of sorts is due. I suggest you consider this ETF as a part of your own diversified portfolio.
PS - I've added some upside targets to show the potential, the 127.2% and 161.8% extensions, the latter of which will take us to about $12.30, or almost 25% higher from here. Plus, that 7.8% dividend and selling covered calls against it will further boost your return!
Oh, and don't get caught flat-footed on this selloff... this could be big!
Happy trading (and investing)!
Enbridge_(TSX: ENB)_May_10_2018Enbridge is one of the largest energy infrastructure companies in North America. It operates in five segments: Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution, Green Power and Transmission, and Energy Services. It's primary area of operations include Canada and the United States.
The stock has treaded downwards since it announced the acquisition of Spectra Energy in 2016 resulting in a debt of close to $60 billion dollars. However, the company has started to sell several non-core assets for which the has received considerable interest from potential buyers. In the long run as oil and gas prices increase, Enbridge is surely going to benefit from the increase in prices.
In the short to medium term, the price has cross the upper bound of the channel. Buyers interested in buying should wait till the stock pull back to the upper support of the channel and confirm that the support holds. However, I strongly believe that at these prices the stock is a steal compared to the assets and potential income from those assets.
