Chart of the Week: Enphase Energy
Time for our chart of the week, and this week we are going to be focusing on energy name Enphase; symbol ENPH. Let’s take a look at the chart. It’s starting to look pretty interesting here.
As we can see, the stock has been on a humongous slide from the late part of summer and the later middle part of July, and it was making a series of lower highs and lower lows. It seems to have really come down to the $110-115 area. And it seems to have put in a nice little bottom over here. And now we’ve been making a series of higher lows.
Certainly not going to go back to the old highs to the $200 area where it was a year, year and a half ago. We can certainly see some upside to this stock over the next couple of months if the pattern still holds.
Indicators are turning bullish
MACD is strong. You can see that it’s in an upward sloping move over here. Actually, it crossed over back in August to a buy signal.
Money flow is impressive. We’ve been making higher highs and higher lows on the money flow. We’re above the zero line.
The TDI (Trader’s Dynamic Index), which compares the relative strength to where bollinger bands are in place, is also in positive territory, and it has crossed over earlier this month for a bull signal.
We also have on the top chart, you can see that the candles have just turned teal. That means they are cautiously bullish right now. We haven’t seen this cautiously bullish signal since the stock broke down in July, so that’s a positive there. Once they turn light blue, that is a bullish signal.
Watch the 200 day moving average
We do have earnings coming out soon on the name soon. We are above the 50 day moving average as we speak. The 200 day moving average – quite a bit above $175-180. Certainly with the stock right here sitting at $131, just to get back to the 200 day moving average would be a nice objective if you want to get long some calls.
This is a stock that really has a lot of volatility in the name, and it does move a lot from day to day.
We like Enphase here for a positive move, maybe up to that $175-180 area to the 200 day moving average, but certainly anywhere in between would be a good move for Enphase.
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