• Chart of the Day: SolarCity Corporation (SCTY)

    by  • September 18, 2013 2:02 pm • Charts to Watch, Quick Hits, Tony Venosa's Chart of the Day • 1 Comment

    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)

    Recommendation:   Long

    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

     

     

     

     



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    About

    Tony Venosa, CMT is a Senior Options Strategist and works on the trading desk at Schaeffer’s Investment Research. He joined Schaeffer’s in 2010. He has worked in the finance industry for over 15 years. He began his career as a trading assistant in Chicago on the floor of the Chicago Mercantile Exchange. He later moved upstairs and worked as a commodities broker on both the retail and hedging side. He left the brokerage industry to begin his trading career as a proprietary equities trader at a Chicago firm. In 2000, Tony moved backed to his hometown and continued trading his personal account. He later went on to earn his Chartered Market Technician designation. He earned a B.S. in Finance from Miami University. Tony’s main focus is short-term directional option trading.

    http://www.schaeffersresearch.com/

    One Response to Chart of the Day: SolarCity Corporation (SCTY)

    1. joachimmueller
      September 18, 2013 9:13 pm at 9:13 pm

      Quite interesting situation. I guess the best I can do is have my broker send me a text message on breakout.

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