Solar stocks might be setting up for a bounce trade here. Instead of going for the most oversold one I decided to pick ENPH – Enphase Energy where earnings are out of the way and where there is almost no overhead resistance as the stock is trading near its all time high. As the chart annotations show I see moving average expansion starting just now. Add a potential 10$ round number level that could act as a price magnet into the mix and the stock could really get going. The only thing that needs to happen is for more traders to see the bullish triangle breakout and volume coming into the stock. The 20 50 100 200 MAs should now act as decent support area.
Click on the chart to enlarge:
Yahoo finance company description:
Enphase Energy, Inc., together with its subsidiaries, designs, develops, and sells microinverter systems for the solar photovoltaic industry. Its microinverter system consists of an Enphase microinverter and related accessories that convert direct current power to grid-compliant alternating current power; an Envoy communications gateway device that collects and transmits performance information from each solar module to the companys hosted data center; and Enlighten Web-based software platform that collects and processes this information to enable customers to monitor and manage their solar power systems. The company sells its microinverter systems primarily to distributors who resell them to solar installers, as well as through original equipment manufacturers and strategic partners; and directly to installers. Enphase Energy, Inc. markets its products primarily in the United States, Australia, Canada, France, the United Kingdom, China, and Italy, as well as in the Benelux region. The company was founded in 2006 and is headquartered in Petaluma, California.
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