Enphase Energy: Tight Consolidation & Golden Cross
Solar energy has been one of a few bright spots in this bearish market. Today we’re looking at the company in the group with the largest market cap: Enphase Energy (ENPH).
The first pattern on this daily chart is the uptrend since mid-May -- the opposite of the broader market’s price action. In fact, ENPH hasn’t made a new 52-week low in 117 sessions. (The S&P 500 last made a new low 16 candles ago.)
Next is the tight consolidation illustrated by Bollinger Bands Width.
Third, you have the level around $220. ENPH probed and reversed at this area in April, June and July. But combined with the uptrend and narrowing price range, traders may look for a breakout if prices manage to cross this resistance. That could be especially true with earnings expected later this month.
Finally, notice how the 50-day simple moving average (SMA) is just now rising above the 200-day SMA. That kind of “golden cross” may signal that the longer-term trend is getting more positive. (Only 10 percent of the S&P 500 have their 50-day SMAs above the 200-day SMAs, according to TradeStation data.)
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Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
The first pattern on this daily chart is the uptrend since mid-May -- the opposite of the broader market’s price action. In fact, ENPH hasn’t made a new 52-week low in 117 sessions. (The S&P 500 last made a new low 16 candles ago.)
Next is the tight consolidation illustrated by Bollinger Bands Width.
Third, you have the level around $220. ENPH probed and reversed at this area in April, June and July. But combined with the uptrend and narrowing price range, traders may look for a breakout if prices manage to cross this resistance. That could be especially true with earnings expected later this month.
Finally, notice how the 50-day simple moving average (SMA) is just now rising above the 200-day SMA. That kind of “golden cross” may signal that the longer-term trend is getting more positive. (Only 10 percent of the S&P 500 have their 50-day SMAs above the 200-day SMAs, according to TradeStation data.)
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. You Can Trade, Inc. is also a wholly owned subsidiary of TradeStation Group, Inc., operating under its own brand and trademarks. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
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