Enbridge Energy Partners: Analyzing Technical Indicators

Enbridge Energy Partners’ moving average

Recently, Enbridge Energy Partners (EEP) went above its short-term 50-day simple moving average. It indicates a bullish sentiment in the stock. It was trading 7.0% above its 50-day simple moving average and 3.5% below its 200-day simple moving average as of January 12, 2017. In comparison, Enbridge Energy Partners’ peers, Plains All American Pipeline (PAA), Andeavor Logistics (ANDX), and Phillips 66 Partners (PSXP) were trading at 15.9%, 16.9%, and 11.3%. For a comparative analysis of four liquid transportation and terminaling MLPs, including Enbridge Energy Partners, read Comparing 4 Liquid Transportation and Storage MLPs.

An additional increase in US drilling activity or crude oil production, driven by strong crude oil prices, could push Enbridge Energy Partners above its 200-day simple moving average. It would result in a more bullish sentiment.

Enbridge Energy Partners: Analyzing Technical Indicators

Short interest in Enbridge Energy Partners

The short interest in Enbridge Energy Partners was 5.2 million shares as of January 12, 2017. At the same time, the short interest in Enbridge Energy Partners as a percentage of float ratio was 2.41%. It’s lower than the 30-day average of 3.4%, which indicates a bullish sentiment in the stock. The short interest in Enbridge Energy Partners is lower than the past one-year and three-year average of 2.8% and 2.9%, respectively.

Price forecast

Enbridge Energy Partners’ 30-day implied volatility was 26.6% as of January 12, 2017. It’s below the 15-day average of 31.0%. In comparison, the Alerian MLP ETF (AMLP) has an implied volatility of 18.8%. Enbridge Energy Partners’ higher implied volatility compared to AMLP could be attributed to its higher crude oil exposure. Based on its current implied volatility, Enbridge Energy Partners might trade in the range of $14.65–$15.77 in the next seven days. Enbridge Energy Partners is expected to trade within this range with a 68.0% probability. It assumes a standard deviation of one and a normal distribution of prices.