Enphase Energy Merits Raising Its Stop Level

Renewable energy technology company Enphase Energy (ENPH) was rated a new fundamental buy by a sell side firm Tuesday with a $330 price target. In our Oct. 25 review of ENPH ahead of earnings we wrote, “I have no special knowledge of what ENPH will report to shareholders Tuesday evening. I give the upside the benefit of the doubt and traders could probe the long side of ENPH risking to $230.” 

Let’s check on the charts of Enphase again. 
In this daily bar chart of ENPH, below, we can see how the price of ENPH has risen from a low back in January. Prices have trended higher with higher lows and higher highs into September. Prices have traded sideways for the past three months or so but a new high for the move up will refresh the uptrend. The slope of the 50-day moving average line is flat and the 200-day moving average line is rising. The On-Balance-Volume (OBV) line shows a rise to September followed by sideways movement. A new high in the OBV line will help confirm the price gains this year. The Moving Average Convergence Divergence (MACD) oscillator is positive. 
 
In this weekly Japanese candlestick chart of ENPH, below, we can see an impressive three-year rise. Prices are trading above the rising 40-week moving average line. The weekly OBV line has been steady to slightly higher the past three years. The MACD oscillator has stayed above the zero line for much of the past three years. Few stocks can make that boast. 

In this daily Point and Figure chart of ENPH, below, we can see a price target of $430. A trade at $327.97 should refresh the uptrend. 
 
In this weekly Point and Figure chart of ENPH, below, we can see a price target of $484. 

Bottom line strategy: Traders who are long ENPH from earlier recommendations should continue to hold. Raise stops to $255 from $230. 

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