ENPH weekly chart shows early bullish reversal signs
Pullback Tests Key Support Zone
The subsequent bearish correction that followed may be getting close to completing the first pullback after a key breakout above the downtrend line. The line was tested successfully as support once during the pullback two weeks ago, as a swing low was established at $48.46, which was very near the trendline. A slightly new corrective low was then generated last week with a low of $47.67. That was close to an exact touch of the trendline, further confirming it as a support zone, after it had marked dynamic resistance prior to the May advance.
Next Target Points Higher
While it is not yet clear whether the corrective low has been reached, the convergence of the 61.8% Fibonacci retracement of the prior uptrend at $46.65 and the 50-day moving average near $46.68 adds to the evidence for a strong support zone. If a sustained bullish reversal follows support, once it is firmly established, ENPH will be poised to recover the recent high and head towards the next upside target zone, approximately $97.37 to $99.91. This potential recovery toward that higher target zone mirrors the earlier breakout from $41.28 that set the current uptrend in motion, reinforcing the view that ENPH is building a stronger, more sustainable trend.
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