Enphase Energy (NASDAQ: ENPH ) is a technology company headquartered in Fremont, California. Enphase designs and manufactures home energy software solutions for the solar industry. It designs, develops, manufactures and markets a home energy solution that connects solar generation, energy storage and management on a single intelligent platform. The stock recovered to an all-time high and continues to exhibit a bullish streak. However, a bigger and deeper pullback should be expected in the near term before it rises again. Below we look at the Elliott Wave outlook for stocks.

ENPH Elliott Wave Weekly Chart

The weekly chart for Enphase Energy (ENPH) above shows that the stock is continuing to rally and is showing an incomplete sequence of the January 2022 low, which favors further upside. The rally from the wave low ((I)) at 229.04 and the pullback in wave ((II)) ended at 113.42. The internal division of the wave ((II)) unfolded as a current. Wave (a) ended at 108.88, wave (b) ended at 282.46, and wave (c) ended at 113.42, completing wave ((II)). Stocks resumed growth in wave ((III)) with internal division as momentum. On the upside of wave ((II)), wave (I) ended at 220.99, and the pullback in wave (II) ended at 128.67. Shares recover to rise in wave (III) to 324.84. Wave (IV) is now in place to correct the cycle from the May 2022 low before it recovers higher.

ENPH Elliott Wave Daily Chart

Enphase Energy (ENPH)’s daily Elliott wave shows that wave (IV) is currently developing more zigzag. Expect further declines before the first part of the zigzag wave a ends. He should then bounce off in wave b before the other leg comes down in wave c to complete wave (IV). Ideally, wave (IV) ends somewhere between 23.6 – 38.2% retracement of wave (III) at 249 – 278 and does not go below 50% retracement of wave (III) at 226. While the reversal at the low of 113.4 remains intact , we should expect the shares to resume growth and pullback to find support in 3, 7 or 11 swings for further growth.

Source: https://elliottwave-forecast.com/stock-market/enphase-energy-enph-in-wave-iv-pullback/

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