Enerplus Corp. (ERF) is one of Canada's largest independent oil and gas producers, but it is not a household name south of the border. Let's check out the charts and indicators, which I believe are bullish, of this company that just released earnings last month.
In this daily bar chart of ERF, below, we can see that prices have broken out on the upside from a consolidation pattern in the $11-$14 area. Prices are trading above the rising 50-day moving average line and above the bullish 200-day moving average line. The On-Balance-Volume (OBV) line has made a new high for its move up and this positive action confirms and supports the price action. The Moving Average Convergence Divergence (MACD) oscillator is bullish and pointed higher.
In this weekly Japanese candlestick chart of ERF, below, we can see how prices bottomed in 2020, before the current mark-up phase. Prices are trading above the rising 40-week moving average line. The candles do not show top reversal patterns and no significant upper shadows. The weekly OBV line shows a bullish rise for more than two years. The MACD oscillator is crossing to the upside for a fresh outright-buy signal.
In this daily Point and Figure chart of ERF, below, we can see the recent upside breakout and a $23 price objective.
In this weekly Point and Figure chart of ERF, below, we used a five box reversal pattern. Here the software projects a possible target in the $31-$32 area.
Bottom line strategy: Traders could go long ERF on a dip to $15 or just slightly below that level. Risk to $12. On the upside gains could be seen to $23 and then the $31-$32 area.
