We recommended the long side of Enphase Energy (ENPH) back on July 28 here. We wrote that, "Traders could look to buy a pullback towards $240. Risk $20 from entry. The round number of $300 is our first price target."
The shares have surged higher and reached our first price target. We also wrote about Point and Figure targets of $321 and $389.
Let's check on the charts again to see if we need any corrections to our strategy.
In the daily bar chart of ENPH, below, we can see that prices have reached our $321 price target. ENPH trades above the rising 50-day moving average line as well as the rising 200-day line.
The On-Balance-Volume (OBV) line shows good strength from February and confirms the price gains this year. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line and moving towards a fresh outright buy signal.
In the weekly Japanese candlestick chart of ENPH, below, we see a bullish picture. Prices are in a longer-term uptrend above the bullish 40-week moving average line. The candles do not show us upper shadows or a top reversal pattern.
The weekly OBV line has a positive trend. The MACD oscillator is in a very bullish alignment above the zero line.
In this daily Point and Figure chart of ENPH, below, we can see a new higher price target of $431.
In this weekly Point and Figure chart of ENPH, below, we used a five-box reversal filter and we now see a price target in the $565 area.
Bottom-line strategy: Traders who are long ENPH should continue to hold those positions but raise stops to $268. The round number of $400 is our next price target.
