9 Takeaways From SolarCity Corp's Chart

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The below chart is of SolarCity Corp ( SCTY ), which engages in the design, installation, and sale or lease of solar energy systems to residential and commercial customers, and government entities in the United States.


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Recommendation: Long

What I Am Looking At:

  • Largely outperforming the broader market, up more than 214% year-to-date.
  • Recent pullback to the rising 40-day moving average, which has been significant during the past year.
  • Coinciding with the 40-day moving average is the 200% year-to-date level, which could be supportive.
  • Pullback has retraced between 38.2% and 50% of the all-time low to the all-time high.
  • Enormous put open interest for the June/July series at the 35-strike could create a tailwind on an unwind situation.
  • Short interest continues to rise, up nearly 25% during the past two weeks and represents 14% of the float; bounce from here could spark short-covering.
  • Analysts have yet to climb on board as three out of four maintain "hold" ratings.
  • Annual sales growth for the past five years is 41%.
  • Long-term annual growth estimate (five years): 33%.
Strategy: Looking for the 40-day moving average and the $35 level to hold with the anticipation of a possible move back to the May highs.

This article by Tony Venosa, CMT, was originally published on Schaeffer's Investment Research .

Below, find some more great content from Schaeffer's Investment Research:


Daily Game Plan - Top of the Range

Study of the Week: Is a Lot of Volatility Bullish?

Trading 101: A Look at the Recent Tape

Twitter: @schaeffers



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Stocks

Referenced Stocks: SCTY

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