Solar Stocks/RSI Diversion/Old Trendline for ENPH
Price corrected yesterday after a price and RSI Divergence.
There is also a rising wedge that was broken yesterday on the daily timeframe, but price is on the run again today. There are several on hourly that are still intact.
The lowest wedge I see on hourly would be broken at 284ish. The bottom trendline is intact so it is not valid.
Price is also bumping in to a very old trendline. You can see this better if you look at 5 year weekly chart and look at the peaks.
le7120 pointed this out to me/THX le7120 (o:
I usually look at long term charts and this was one time that I did not. This trendline slopes upward and is resistance so far. If price manages to get above it, it would be support but so far price has stalled there and has been forming funky patterns like bearish wedges and divergences. If price breaks this trendline I will revisit and update this chart.
Trendlines, support and resistance levels were made to be broken, but so far this trendline has not been successfully broken.
No recommendation.
Divergence occurs when price makes a new high or low in price but the RSI does not make a corresponding new high or low value.
To a certain extent, price and RSI should mirror each other. If you look closely, you can see flags, cups, Ms and Ws on RSI that reflect the actual price chart. Since RSI is just a line, it is by no means exactly replicating the chart but the flow should be somewhat similar. (o:
FSLR and SEDG also had divergences with RSI. FSLR also broke the support line of a rising wedge.
There is also a rising wedge that was broken yesterday on the daily timeframe, but price is on the run again today. There are several on hourly that are still intact.
The lowest wedge I see on hourly would be broken at 284ish. The bottom trendline is intact so it is not valid.
Price is also bumping in to a very old trendline. You can see this better if you look at 5 year weekly chart and look at the peaks.
le7120 pointed this out to me/THX le7120 (o:
I usually look at long term charts and this was one time that I did not. This trendline slopes upward and is resistance so far. If price manages to get above it, it would be support but so far price has stalled there and has been forming funky patterns like bearish wedges and divergences. If price breaks this trendline I will revisit and update this chart.
Trendlines, support and resistance levels were made to be broken, but so far this trendline has not been successfully broken.
No recommendation.
Divergence occurs when price makes a new high or low in price but the RSI does not make a corresponding new high or low value.
To a certain extent, price and RSI should mirror each other. If you look closely, you can see flags, cups, Ms and Ws on RSI that reflect the actual price chart. Since RSI is just a line, it is by no means exactly replicating the chart but the flow should be somewhat similar. (o:
FSLR and SEDG also had divergences with RSI. FSLR also broke the support line of a rising wedge.
Comment:
Price has broken the wedge. The bottom trendline can be a level of resistance after it is broken.
Trade active:
1-6/Price has bled red candles for a while now. It would seem sellers will exhaust and perhaps a bounce soon.
Oversold.
Oversold.