ENPH recharged & potential in its explosive upside action
Highlighted previously, two months ago, ENPH exploded 50% to the upside against the major market move. Then it went into a consolidation phase for a month, and it appears to have broken out of a flag pattern. And by pattern projection, there is another potential 25-30% upside to this move.
The daily chart shows the breakout and possible engagement point (white arrow) in July. This came with favourable technicals where the MACD and RPM crossed over.
A clear consolidation phase started in August and a descending range formed the flag. This week saw the star of an attempt to breakout and yesterday was a major move to the upside with momentum (8% bullish marubozu) and broke out of the flag. Another potential entry point is at breakout point (white arrow).
With this, the flag pole (yellow arrow) can be used to project the upside target. At the moment, both the technical indicators RPM and MACD are supportive as they cross over their respective MA lines.
Upside target by flag pattern projection is 406.
Out of pure interest and curiosity, I wanted to analyze the effect of this Gann box which I recently find interesting. So it was "force fitted" into the price action, where the first 0.25 of the time axis measured the flag pole rally. This fitted to the start of the consolidation flag. The height of the initial rally was set at the 0.5 level.
The outcome was rather interesting...
at 0.75 of the timeline, spot-on the breakout occurs.
and the projected remainder of the 0.5 also approximates the upside target at 420 (as opposed to the flag pole projection at 406)
For Gann practitioners, please do enlighten.... thanks in advance!
The daily chart shows the breakout and possible engagement point (white arrow) in July. This came with favourable technicals where the MACD and RPM crossed over.
A clear consolidation phase started in August and a descending range formed the flag. This week saw the star of an attempt to breakout and yesterday was a major move to the upside with momentum (8% bullish marubozu) and broke out of the flag. Another potential entry point is at breakout point (white arrow).
With this, the flag pole (yellow arrow) can be used to project the upside target. At the moment, both the technical indicators RPM and MACD are supportive as they cross over their respective MA lines.
Upside target by flag pattern projection is 406.
Out of pure interest and curiosity, I wanted to analyze the effect of this Gann box which I recently find interesting. So it was "force fitted" into the price action, where the first 0.25 of the time axis measured the flag pole rally. This fitted to the start of the consolidation flag. The height of the initial rally was set at the 0.5 level.
The outcome was rather interesting...
at 0.75 of the timeline, spot-on the breakout occurs.
and the projected remainder of the 0.5 also approximates the upside target at 420 (as opposed to the flag pole projection at 406)
For Gann practitioners, please do enlighten.... thanks in advance!
