Enphase Energy Inc (NASDAQ: ENPH)

Enphase Energy, Inc., together with its subsidiaries, designs, develops, and sells microinverter systems for the solar photovoltaic industry. Its microinverter system consists of an Enphase microinverter and related accessories that convert direct current power to grid-compliant alternating current power; an Envoy communications gateway device that collects and transmits performance information from each solar module to the company’s hosted data center; and Enlighten Web-based software platform that collects and processes this information to enable customers to monitor and manage their solar power systems.
Take a look at the 1-year chart of Enphase (Nasdaq: ENPH) below with my added notations:

Over the last 3 months, ENPH has been consolidating within a couple of long-term price levels. First, ENPH has formed a clear support level at $10 (blue). In addition, the stock has also been forming a down trending resistance level (red). These two levels combined have ENPH stuck within a common chart pattern known as a descending triangle that will eventually have to break one way or another.

The Tale of the Tape: ENPH is currently trading within a large descending triangle. A long trade could be made on a break above the down trending resistance or a pullback to $10 support. A short trade could be made on ENPH if the stock breaks below the $10 support level.
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