SEDG longSEDG earnings gap up on big volume into all time highs. Want to see the low of this candle hold.
SEDG trade ideas
Recovery and fresh ideas in alternative energie sectorsAfter a serious slump we see some life in SEDG. Stock went through a constructive bottoming phase with three retests on low volume followed by surges of accumulation. Last three swings show higher highs and higher lows. Yesterday the stock bounced off the 50d SMA and surged through major resistance at 14.50. It is now trading at the next major resistance level around 15. We also see two major volume clues. One came after last earnings and the other one yesterday. Barron's published some bullish stuff on SEDG which is not the best way to start a run. But it had a rather strong intraday shakeout all the way back to the 50s SMA.
A big plus is the fact that there isn't much attention lately (just check the social momentum indicator on stock twits for this purpose as it provides a very powerful contrarian indicator due to the large userbase!)
I also noticed that AGR is acting quite constructive and is setting up for a potential run. Both are alternative energy names (solar and natual gas) which could lead a recovery in the respective sectors. As a plus one could be lucky with SEDG as it -at least in my opinion- could be a takeover target.
VCCBO + Retest Gap + 0R/NS + Gap Filled + 10emaX50&100(VCCBO) = Volume Confirmed Consolidation Breakout.
(OR/NS) = Old Resistance/New support
SEDG broke out of consolidation on high volume. The gap up is a retest gap and today it looks like it is retesting old resistance which is holding as new support. this retest has also filled the gap
Since I dont want to be in this play if the 14.50 mark doesn't hold I am going to keep my stop tight which puts me at 3:1 to the high of the gap and almost 5:1 at 16.50
Trigger: 14.65
Stop: 14.25
Target: 15.79
UI | Cashflow: 8.5% on SOLAREDGERETIREMENT ACCOUNT HOLDERS
If you have this stock $SEDG NASDAQ:SEDG
Stock screener protocol is good except the earnings date falls on 2nd August. Take care of it...
Chart is looking good. Buying low as it bounce on TREND LINE. And in next few days, possible cross over of green on red and white MAs. See the chart NASDAQ:SEDG
Aug 16 18.00 call is 1.60 which is 8.5% (unassigned return) and 4.4% (assigned return)
Be Awesome
Raj
CIO
Unconventional Intelligence
Risk: Enter at your own Risk. Investment mindset differs from person to person. Method may not be suitable for your investment objectives.
Disclaimer: I don't provide investment advice, I'm entering the market with my own account.I don't try to accurate in entry, because most of the time I or my client own this stock, so we only look approximate change in trend. It is not necessary you have to do the same.
