RUN - Nov 24 Opening Sustainable MomentumTrade idea
Fundamentals
This is a Trump trade, based on his agenda. Solar part of the clean energy sector will see a shift towards traditional energy sources like oil.
Bad Earnings
RUN had bad earnings with a quarterly loss of -$0.37 vs previous earnings of +$0.55.
The solar energy products distributor posted revenue of $537.2 million in the period, which also fell short of Street forecasts. Ten analysts surveyed by Zacks expected $560.6 million.
Technicals
Price opened with momentum, breaking out and creating new lows.
Risks
Opening momentum candle's ADR is 15.97%, ADR for the stock is 7.61%. After two days of deep drops, price could be over extended and result in it retracing.
Trigger: SPX, RUT, Trump winning the elections
Opening Sustainable Momentum 🧑🏻🚀
Strategy
Signals identify market opening H2 candles through momentum and behaviour change that potentially could indicate a shift in the current price overall structure (Price gaps and ADR %).
Risk
We use the signal candle's highs and lows for entry and stop loss. If price hits the stop loss, it is clear that the shift we expected did not come to fruitation.
Current SL is at 0.25Fib
Focus
Focus is never on the signal candle alone, but it's role in the larger structure and the direction it is inclined towards with a minimum Risk & Reward of 2R.
Stock must be in a pull back or consolidation area waiting for a broad market momentum to ignite it forward.
Character
Trend, Positive Skew