On July 13 we recommended to Real Money subscribers that, “Traders who are long [Enphase Energy] (ENPH) from $180 should hold those positions. Our targets are $225 near-term and $324 long-term.” Well, the shares are trading around $265 now so let’s check again.
In the updated daily bar chart of ENPH, below, we can see that the shares slowly drifted lower into early October but later in the month gapped higher and the rally was on! ENPH is trading above the rising 50-day moving average line and the rising 200-day line.
The On-Balance-Volume (OBV) line has been rising since May and tells us that buyers of ENPH have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but it has narrowed significantly. If prices stay strong we should see the oscillator turn higher again.
In the weekly Japanese candlestick chart of ENPH, below, we see a bullish picture. Prices are in a longer-term advance. The slope of the 40-week moving average line is bullish.
The weekly OBV line is rising and the MACD oscillator is bullish.
In this daily Point and Figure of ENPH, below, we can see a slightly higher price target of $329.
Bottom-line strategy: Continue to hold longs. The round number of $300 and then the $324-$329 area are our price targets now.