First up is Enbridge (ENB - Get Report), the $32 billion energy firm. ENB has been churning sideways for most of the year, delivering gains that only come in at half of what the S&P has produced since the first trading session in 2012. But Enbridge shareholders could be rewarded for their patience in the near-term thanks to the pattern that's been setting up in this stock's chart.
Enbridge is currently forming an ascending triangle, a bullish setup that's formed by a horizontal resistance level above shares -- in this case at $41.50 -- and uptrending support below them. As ENB bounces in between those two technical price levels, it's getting squeezed closer and closer to a breakout above resistance. That breakout is the buy signal.The long-term setup that ENB has been setting has equally long-term trading implications. The fact that $41.50 has acted as such a strong barrier to upside (a fact gleaned from just how hard shares fell each of the last three times they approach it) means that a breakout has all the more significance. Still, it's important not to be early here. When the breakout does happen, I'd recommend putting a protective stop just below the 200-day moving average.