Monday night Jim Cramer told his Mad Money viewers about his favorite solar stock picks. The first one was First Solar ( FSLR) , which we discussed here on Real Money. 
Next up was Enphase Energy ( ENPH) , the leader in micro-inverters that make solar panels more efficient when converting DC power into AC current for your home. We recommended ENPH back on April 28 where we wrote that "Today's gap to the downside could be the start of a decline or we could see support materialize in the $135 area again. If support holds, aggressive traders might consider the long side of ENPH risking below the rising 200-day line. Conservative traders should wait for strength above $180 before buying."
Let's see how the charts and indicators look today.
In the updated daily bar chart of ENPH, below, we can see that only conservative traders who waited for strength above $180 are long now. Prices have broken out above the highs of March and April. ENPH is trading above the rising 50-day moving average line and the rising 200-day moving average line.
The On-Balance-Volume (OBV) line shows some improvement from early May but has not yet broken out to a new high for the year. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but has narrowed toward a possible crossover and potential take profits sell signal.
In the weekly Japanese candlestick chart of ENPH, below, we see a mixed picture. Prices have rallied back above the rising 40-week moving average line but the recent candles suggest caution. We can see a possible high-wave candle and then a possible spinning top pattern. These candles give us pause as they represent more of a balance between bulls and bears. The next candle pattern is key -- will the uptrend be refreshed with a bullish candle or will we get a bearish candle to mark a top reversal?
The weekly OBV line shows some recent improvement and that is good and the MACD oscillator just crossed to the upside for an outright buy message.
In this daily Point and Figure chart of ENPH, below, we can see a potential downside price target in the $153 area. Strength above $191.64 will likely turn the chart bullish.
In this weekly Point and Figure chart of ENPH, below, we can see a longer-term price target in the $324 area.
Bottom-line strategy: Traders who are long ENPH from $180 should hold those positions. Risk to $155 for now. Our targets are $225 near-term and $324 long-term.
