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Today’s chart is of SolarCity Corporation (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.
Ticker: SolarCity Corporation (SCTY)
What I Am Looking At:
- Largely outperforming the broader market, up more than 200 percent year-to-date
- Solar industry has been the best performer year-to-date
- Recent pullback to the rising 160-day moving average
- Bull flag continuation pattern with a contraction in volatility
- Pullback has retraced between 50 and 68.2 percent of the all-time low to the all-time high
- Peak put open interest for the September series at the 34-strike could be supportive
- Short interest represents 13 percent of the float, bounce from here could spark short-covering
- Analysts have yet to climb on board as 3 out of 3 maintain “hold” ratings, potential for upgrades
- Annual sales growth past 5 years is 41 percent
- Long term annual growth estimate (5 years) 33 percent
Strategy: Looking for a break above the flag pattern and the 40-day moving average, targeting August high