Lithium-ion battery maker Enovix Corp (ENVX) has rallied the past two months. Does it have more of a charge to keep going? Or will the advance stall? Let's check out the charts and indicators.
In this daily bar chart of ENVX, below, I see an improving technical picture. Prices topped out in August/September in the $26 area and declined to the $8 area in January. ENVX has rallied above the 50-day moving average line and the slope of the line is now positive. Prices are testing the bottoming 200-day moving average line.
Trading volume does not look like it is increasing much but the On-Balance-Volume (OBV) line shows an increase the past three months and suggests that buyers of ENVX are being more aggressive than sellers.
The Moving Average Convergence Divergence (MACD) oscillator has moved above the zero line for a buy signal but the two moving averages that make up this indicator have narrowed significantly. We need to watch for a potential take profit sell signal.