Daily Stock Report

Enerplus Corp. - (ERF.TO) - May 11, 2021 

Enerplus (ERF.TO) shares re-entered the Green Favored Zone of the SIA S&P/TSX Composite Index Report in early February and have remained there since. Yesterday they climbed 10 spots to 14th place. Since we last mentioned ERF.TO in the February 11th issue of the Daily Stock Report, the shares have gained 28.1%. 

Positive technical signals continue to mount in Enerplus (ERF.TO) shares. Back in the winter, Enerplus completed a bullish Ascending Triangle base pattern and then snapped a downtrend line. In recent weeks, the shares had been consolidating between $6.00 and $7.50. Yesterday, the shares broke out to the upside once again, signaling the start of a new upleg. 

Based on a measured move from the recent trading range, initial upside resistance may appear near $9.00 followed by $10.50 with the $10.00 round number (and previous resistance point) in between them. Initial support appears a the 50-day moving average near $6.60.   

Since bottoming out last November, Enerplus (ERF.TO) shares have been steadily marching upward. In recent months, positive signals have continued to pile up. A high pole in February snapped a long-term downtrend and then was followed by a consolidation phase through March and April where a symmetrical triangle of higher lows and lower highs formed. 

This month, Enerplus has resolved the triangle to the upside with a bullish Double Top breakout that has now been confirmed by the completion of a bullish Spread Double Top pattern which also signals the start of a new upleg. 

Horizontal and vertical counts suggest potential upside resistance tests on trend near $8.45, then $9.15 and $10.90 along with the $10.00 round number. Initial support appears near $6.95 based on a 3-box reversal.    

With a bullish SMAX score of 9, ERF.TO is exhibiting near-term strength against the asset classes.

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