SCTY looks ready for move higherSolarCity poked its head off consolidation and looks ready to amke move higher. Overall, stock gained 400% since it became public.
This has largely been driven by its attractive business model, which has allowed it to grow its customer base at a feverish pace. Unlike other installers who require customers to make upfront cash payments, SolarCity foots all the installation costs upfront and then leases the solar system back to the home or business on whose roof it sits.
After it found top at $88, then it was sold off very hardly (lost almost half of its value) and found at $46 -$48. After it broke up descending chanel, it caught momentum buying. Controlled pullback and resuming of buying - that is what we have. Combine it with strong overall markets and that is how you get high probability tardes. Holding above $66.50 could keep its momentum intact for potential move to $74-$76 (previoous high and trend line). Manage this position according to your timeframe and risk management rules. For swing traders, if it will go below $62.50, then it makes this idea invalid. For more active traders, use short term moving averages to judge price action.
Solar
Solar sector catches some upside momentumSince the beginning of March this solar ETF entered into bear channel and was laggard sector vs broad market as investors were buying major cap, high dividend stocks.
Nevertheless, it is just 38% pullback from big move from $15.00. Now, it builts higher highs and higher lows - strength of buyers. Yesterday, it closed near highs and broke previous dwing high at $42. So, it could be our point of potential support, then we have 8/21 EMA $40.60-$41.20 respectively. Previous low at $39.09. Target #1 $44.30ish.
Some stocks from this sector that are showing strength: $FLSR, $SCTY, $SPWR, $TSL.
GLW break up of wedge, strong up trend The S&P 500 just broke up consolidation that was theme of year 2014. Yeasterday, sectors that were recent laggards (high-beta, small-cap) showed relative strength.
Overall you have to take stock specifique approach and be willing to buy dips in strong stocks if you want to be successful in this tape.
This solar company attract my attention. It was wedging near highs and stays in strong uptrend since gap up on 23 of October 2013.
Yeasterday it broke up wedge with close on dead highs and triggered LONG ENTRY.
STOP below short term moving averages and wedge support @ $20.50.
Pivot high @ $21.74 is first TARGET.
If you want to buy pullback - $20.90-$21.10 could be our buyable area.
Weekly Options Play With FSLR and SCTYLooking at these two charts, it's hard to dispute that there's a relationship between the micro-trends of $FSLR and $SCTY. They're in the same sector, so similar macro-trends are visible; within that sector, they are competitors in several ways so if one goes up it makes sense that the other would go down on a micro level.
The yellow lines are the most recently established R1 and S1 levels of $FSLR if April is included up to today...I included them to show that this most recent peak didn't even reach it, so the unusual volume that drove the price up on its' most recent spike took it to territory where it doesn't really belong (low volume has been sustaining it if you follow the chart down).
Most analysts, most notably those at $GS are expecting a stronger earnings statement and guidance from $FSLR than from $SCTY. So not only is there a natural technical reason for $FSLR to go down, but there's also analyst sentiment reasons for Solar City to go up this coming week and FSLR to drop.
Long story short, I'm buying weekly SCTY calls and $FSLR puts.
