Enphase Energy was pointed out as a candidate for longs on Wednesday morning, the day after it broke out a Cup and Handle pattern. Check the scan results for additional stocks that show similar performance.
Bollinger Band TTM Squeeze Scan
Enphase Energy ENPH, like the other candidates on the Wednesday scan, also shows MACD in a bullish cross. Volume has been above average, printing “pocket pivots” the entire week. A 20% move (typical IBD calc) from the recent breakout is 7.6 points or 45.60 (+/-) before initial profit-taking. Keep an eye on this level in the weeks that follow.
Finally, ENPH is printing a cup and handle continuation pattern, with the depth of the cup as the measured move, 16 points (+/-). Add this value to the breakout gives us an ultimate target of 54 (+/-).
New entries should consider pullbacks to the rising 9/21d ema.
Existing longs, looking to swing for the 45.00 zone, can sell covered calls along the way as Bollinger Bands continue to expand.
Presently IV = 89% and still rising. We will watch for peaks to signal the best time to sell premium.
Bollinger Band TTM Squeeze Scan
Technology is holding up very well, captured in the sector charts below. Energy (XLE) is moving off the lows, one of the few lagging the industry groups these past few weeks. Therefore, alternative energy stocks like ENPH are showing relative strength. Keep this in mind.
Overall, the markets look pretty strong, as reflected in the SPDR sectors. We’ll monitor these conditions for any signs of rotation in the next few weeks, as seasonality kicks into high gear.
Futures are rising off the lows into non-farm payrolls this morning.
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Vinny
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