We have not covered Enphase Energy (ENPH) for a long time, but Real Money's Bob Byrne has been tracking the stock closely. The company designs and produces software-driven home energy technology that spans solar generation, home energy storage and web-based monitoring and control.
The stock made a big upside breakout Wednesday so let's check out the charts.
In the daily bar chart of ENPH, below, we can see that the shares surged sharply higher Wednesday breaking above the highs from April, June and early July. Trading volume has been increasing since early June.
The On-Balance-Volume (OBV) line shows strength from early February. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In the weekly Japanese candlestick chart of ENPH, below, we can see that the shares have been in a longer-term advance. Over the past two years prices have made a large and bullish consolidation pattern. Prices are trading above the rising 40-week moving average line.
The weekly OBV line shows a long-term steady move with renewed strength this year. The MACD oscillator is in a bullish setup.
In this daily Point and Figure chart of ENPH, below, we can see a price objective in the $321 area.
In this weekly Point and Figure chart of ENPH, below, we can see a price target in the $389 area.
Bottom-line strategy: Traders could look to buy a pullback towards $240. Risk $20 from entry. The round number of $300 is our first price target.
