Popular Energy Stock Looks Ready To Pop
Enphase Energy, Inc. engages in the design, development, manufacture and sale of micro inverter systems for the solar photovoltaic industry. Its products include IQ 7 Micro-inverter Series, IQ Battery, IQ Envoy, IQ Microinverter Accessories, IQ Envoy Accessories and Enlighten & Apps.
Take a look at the 1-year chart of Enphase (ENPH) below with the added notations:
Chart of ENPH provided by TradingView
ENPH has formed an important level of resistance at $320 (yellow) over the past couple of months. In addition, the stock has also formed a trendline of support (green). The stock will have to break one of those lines, eventually.
The Tale of the Tape: ENPH has created a trendline of support and a $320 resistance. A long trade could be entered at the trendline, or on a break above $320, with a stop placed under the point of entry. However, if trendline support were to break, lower prices could follow instead.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key…
Christian Tharp, CMT
Do not trade options until you watch my urgent message:
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