The below chart is of SolarCity Corp
(NASDAQ: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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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%.
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.
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Daily Game Plan – Top of the Range
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No positions in stocks mentioned.