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Todays Big Stock Wealthpop News

Enphase Finds The Energy To Bounce At This Level


With all the strength in the energy sector, today’s trade breakdown is an interesting one. Despite this strength, Enphase (ENPHhas diverged from this path and as you can see, struggled over the past month or so.

The recent rally in the overall market may have caused some of these energy names to lose some steam as investors found their way back into other sectors. However, after declining as much as it has, the stock is now approaching a key price level.

Traders can use these historic support and resistance levels to determine what would be their highest probability trade. For ENPH, this $220 level can provide a possible bounce spot. Oftentimes, when stocks declines to a historically significant level, like this stock has, buyers could possibly step in to test puts for a little bit of a relief bounce. Now, this doesn’t mean that the shorter term trend has flipped from bearish to bullish, but stocks do not just rise or fall in a straight line.

After these large increases or decreases in price, a stock will often retest. Meaning it will move in the opposite direction of the trend briefly before continuing on the established trend. These retest can provide traders with a scalping opportunity and play what the market is giving them.

It is important that when you attempt to play these retests that you have your risk defined and stick to your risk management, in case of a fake out move.

Learn how to trade setups just like this by becoming a part of The Profit Machine community. Lay a good foundation to your trading by focusing on learning all you can, so that you may one day be trading your own system. Creating your own system of trading can be a long and, at times, a very frustrating journey.

Cut down on the time and frustration by joining our growing team of traders. I will show you my system for options trading, which you can build upon to create your own system, one that suits you and your preferred style of trading.

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Good Luck!

Christian Tharp, CMT

Christian Tharp

I am an expert stock market coach having helped over 4000 beginner and advanced traders & investors from around the world take control of their financial futures. I also write stock market related articles for the Adam Mesh Trading Group. My Chartered Market Technician (CMT) designation substantiates me as an expert in areas such as the technical analysis of stock trends, market indicators, cycles, price patterns, Elliot Wave principles, Candlestick charting, analyzing financial trends and behaviors, portfolio strategies, and forecasting future price movements. With my straightforward approach to simple, systematic trading, students learn how to strategically assess buy signals and market entry timing, establishment and management of stop losses, and how to employ a simple and disciplined trading approach that creates profits.

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