NFTRH+; Future Low Risk Buy Level on ENPH

This home solar company got hammered by the market despite going profitable and exceeding analysts’ expectations on its most recent results.

enphOkay fine. A richly valued growth story sold the news. Logical.

We care about the charts, however. The daily is at a potential bounce area above the SMA 200, but I don’t see it as necessarily the low after the post-earnings reaction. Typically events like this are not just a one day thing. I’ve drawn in resistance at 23 should the bounce continue. That should contain it if there is further downside to come (although it could bounce to the SMA 50 to fill the gap at 25). Preferably, it would just resume dropping promptly.


As to a point where I’d want to buy it in the coming weeks the weekly chart advises a bullish picture, with strong support from 15 to the 62% Fib retrace level at 16.30. That could be a firm buy and hold for a company that is all about the future that saw its stock price get well ahead of itself on investor enthusiasm AKA momo AKA hype. As a side note, I think it is unrealistic to expect the gap at 10.25 on the daily chart above to fill. That gap does not exist on the weekly chart.


A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the technical parameters are already noted. These updates are meant as a starting point for your further research if interested. I will not personally buy every item highlighted and will sometimes sell (ref. Trade Log) any item that I do buy below target (assuming I’ve not stopped out or sold for some other reason) as I often do. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.