Potential Bear Flag in Enphase
Enphase Energy has drifted sideways for almost a year, and some traders may think a long-term downtrend is resuming.
The first pattern on today’s chart is the drop after prices stalled at the December high near $140. That false breakout is a potentially bearish signal.
ENPH proceeded to slide below $100. It next bounced and retraced about half the decline, which may confirm its direction has turned lower.
Third, a series of lower highs since early July may be viewed as a bearish flag. The solar stock closed below the line on Friday. Has a breakdown begun?
Finally, several simple moving averages (SMAs) are more or less on top of each other. That compression, which results from the long period of sideways movement, could potentially give way to another period of volatility.
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The first pattern on today’s chart is the drop after prices stalled at the December high near $140. That false breakout is a potentially bearish signal.
ENPH proceeded to slide below $100. It next bounced and retraced about half the decline, which may confirm its direction has turned lower.
Third, a series of lower highs since early July may be viewed as a bearish flag. The solar stock closed below the line on Friday. Has a breakdown begun?
Finally, several simple moving averages (SMAs) are more or less on top of each other. That compression, which results from the long period of sideways movement, could potentially give way to another period of volatility.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options and futures. See our Overview for more.
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 or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at https://www.TradeStation.com/DisclosureOptions. Before trading any asset class, customers must read the relevant risk disclosure statements on https://www.TradeStation.com/Important-Information/. System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors.
Securities and futures trading is offered to self-directed customers by TradeStation Securities, Inc., a broker-dealer registered with the Securities and Exchange Commission and a futures commission merchant licensed with the Commodity Futures Trading Commission). TradeStation Securities is a member of the Financial Industry Regulatory Authority, the National Futures Association, and a number of exchanges.
TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit [url =tradestation.com/DisclosureTSCompanies] TradeStation.com/DisclosureTSCompanies for further important information explaining what this means.
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