The shares of alternative energy concern Enphase Energy (ENPH) are down 1.1% to trade at $194.18 at last check, despite earlier announcing the expansion of a partnership with residential contractor Momentum Solar to include battery storage. Investors shouldn’t look away just yet, though, as the security just hit a Jan. 7 all-time high of $222.43, and still sports a 427.2% year-over-year lead. What’s more, this recent pullback has Enphase Energy stock near a historically bullish trendline, which could launch the equity even higher over the coming weeks.
More specifically, the security just came within one standard deviation of its 40-day moving average, after spending the past several months above this trendline. According to data from Schaeffer’s Senior Quantitative Analyst Rocky White, nine similar signals have occurred during the past three years. In 63% of those instances, ENPH enjoyed a positive return one month later, averaging an impressive 20.8% gain. From its current perch, a move of similar magnitude would put the stock just over the $234 mark – at a brand new record high.
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Now could be a good opportunity to weigh in on of Enphase Energy stock’s next move higher with options. The security’s Schaeffer’s Volatility Index (SVI) of 101% sits in the low 27th percentile of its annual range. In other words, ENPH sports attractively priced premiums at the moment. Plus, the equity’s Schaeffer’s Volatility Scorecard (SVS) stands at an elevated 99 out of 100, meaning the stock has exceeded options traders’ volatility expectations during the past year.
