If you are planning to buy Enbridge Inc, share, don’t just buy, analyze its price action movement. Enbridge core business is strong and it may produce strong distribulate cash flows according to The Motley Fool, the stocks ENB was also mentioned as one of the best TSX dividend stocks. I am curious where the price is going that’s why I want to share this with you.
The Dollar Cost Averaging Per Month of Enbridge ENB
On March 1, 2020, the ENB stock price opened at $50.19 per share and on February 1, 2021 the stock price $43.34, let’s analyze the average price of ENB in one year and assuming you will buy 10 shares per month.
The average stock price of ENB is $42.13, if you accumulated 120 ENB stocks within one year, you will get a gross profit approximately $5,232 investing 10 shares per month (spending) $$5,474.00. We don’t include taxes and trading charge here. You may think you will lose some money, but you can earn passive income in dividends. And in the end, you will make profit because of dollar cost averaging when you keep on buying stocks. Here is the scenario;
The lowest price is $36.95, and the highest peak is $50.19, if you keep on buying and you follow your target price to sell your stock at the highest peak, you will get good ROI.
Hey! To understand what I mean, kindly read this stock market dollar cost averaging.
Enbridge ENB Stock Price Action
Now, what if you love technical analysis and you patiently wait and you look for the DEEPEST, buy at the deepest and you sell at the highest or just HOLD because you love and believe in the company core business. Here is the scenario for technical analysis trader;
The Enbridge ENB stock chart tells us the clear price action, it is now in bullish or UPTREND. Buying Enbridge ENB stocks using technical analysis can help you (what price) to get in.
If you buy today at $43.70, and just keep on buying on the previous low which is $41, then you patiently wait as if the price become bearish and touch the support level at $38 and pump some investment below that price, you will get some nice profits when the price goes back to $43.
That’s how I see it, the clear price action. If you buy today at $43.70, it can possibly hit the price $45 to $46 and make some profit. If the price drops to previous low, buy again, besides VALUE INVESTING, rocks! It rocks if ENB has good solid business reputation with amazing products and services loved and used by Canadians. Guessing investing sucks! Do you liked this post? Leave a comment!
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