Guggenheim Canadian Energy Income ETF (NYSEARCA:ENY) — This energy income ETF is comprised of approximately 45 high-yielding Canadian securities. These holdings must yield at least 1.5% to 2% and meet other requirements, which can be viewed here.
The fund’s third largest holding is Crescent Point Energy Corp (NYSE:CPG). This is one of my favorite Canadian energy stocks, and since I recommended it as the Trade of the Day on March 18, shares are up more than 19%.
Many analysts are calling for a bottom in the price of oil. And, on Tuesday, oil magnate and head of BP Capital Management T. Boone Pickens said, “I think you could very well be at $100 a barrel by the end of 2016.”
I last reviewed ENY in the Trade of the Day on Dec. 24, when it was trading at $11.95. Since then, it formed a broad “W” bottom with a low at about $9.50 and a high near Tuesday’s close at $11.26.
In late February, ENY made an impressive break through it bearish resistance line. And the chart shows accumulation beginning in earnest at the beginning of March as the ETF began to climb from its recent low. The advance broke through the 50-day moving average, now at $10.78, and attacked a triple-top at approximately Tuesday’s close of $11.26.
Buy ENY at the market for a trading target of $13.50 by August, which would result in capital gains of 20%. Investors may wish to purchase this Canadian energy ETF for appreciation on a rebound in crude prices and the Canadian dollar, as well as the fund’s nearly 4% yield.
