Enphase Energy (NASDAQ: ENPH) ENPH stock price was in an uptrend. It has ost the initial gains and retraced toward the swing lows of $100. Furthermore, the chart showcased the falling channel, and ENPH stock persisted in forming lower lows and erased the gains. Moreover, the price action favors the bears and indicates a massive short buildup activity, leading to bearishness for the past months. However, ENPH stock price is close to the crucial support zone of $110, which needs to be protected for attempting a rebound. If not, it will lead to retest $100.
Furthermore, the ENPH stock chart structure was destroyed and did not indicate any signs of a healthy comeback, whereas bulls might attempt a rebound to retest the 20-day EMA near $125. As per the options chain, at the strike price of $120, a massive open interest of 2070 hundred shares on the call side signifies the resistance area, whereas, at the strike price of $113, an open interest of 909 hundred shares on the put side is the support zone.
At press time, ENPH stock price was $114.22 with an intraday drop of 2.24%, showing bearishness in yesterday’s market session. Furthermore, the trading volume increased by 1.23% to 4.89 Million, and the market cap is $15.575 Billion. However, analysts have maintained a buy rating with a yearly target price of $185.34, suggesting a growth outlook for the upcoming sessions.
Enphase Energy, Inc. is a global energy technology company that designs, develops, manufactures, and sells micro inverter systems for the solar photovoltaic industry. The firm’s products include the IQ 7 Microinverter Series, IQ Battery, IQ Envoy, IQ Microinverter Accessories, IQ Envoy Accessories, and Enlighten & Apps. It operates through the following geographical segments: United States, India, China, Mexico, New Zealand, Romania, and Other.
Will ENPH Stock Regain Momentum or Retest $100?
On the daily charts, ENPH stock price trades inside the falling channel and persists in forming lower lows for the past sessions. Moreover, the price action shows that ENPH stock is trying to settle the gains and absorb the selling pressure. Furthermore, the chart justifies the bears are dominating the battle and showed their supremacy by defeating the bulls for the past sessions.
The RSI curve is below the neutrality, showing a bearish divergence, suggesting that follow-on selling pressure will continue and ENPH stock may retest the spot of $100.
The MACD indicator showed a bullish crossover and formed green bars on the histogram, suggesting a neutral outlook for the upcoming sessions.
Summary
ENPH stock price is below the significant moving averages. It is persisting in losing gains, highlighting the bears’ dominance. Moreover, the chart structure highlights the falling channel. The stock continues to form lower lows and the bulls have lost momentum, indicating a negative outlook for the upcoming sessions.
Technical Levels
Support Levels: $110 and $100
Resistance Levels: $120 and $125
Disclaimer
The views and opinions stated by the author or any other person named in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto or stocks comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/10/04/enph-stock-price-dragging-gains-will-enph-attain-a-pullback/