Potential Bear Flag in EnphaseEnphase Energy has drifted sideways for almost a year, and some traders may think a long-term downtrend is resuming.
The first pattern on today’s chart is the drop after prices stalled at the December high near $140. That false breakout is a potentially bearish signal.
ENPH proceeded to slide below $100. It next bounced and retraced about half the decline, which may confirm its direction has turned lower.
Third, a series of lower highs since early July may be viewed as a bearish flag. The solar stock closed below the line on Friday. Has a breakdown begun?
Finally, several simple moving averages (SMAs) are more or less on top of each other. That compression, which results from the long period of sideways movement, could potentially give way to another period of volatility.
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