Good Day, Sunshine? Check out these two solar stocks — First Solar (FSLR) and SolarEdge (SEDG). (December 05, 2017)
SEDG FSLR
I want to look at a couple solar stocks today in this Free Chart video. First of all SolarEdge ( NASDAQ: SEDG ) has been really on a tear for quite a while but over the last month you can see what happened; I don’t really need to give you the play-by-play. The stock had been moving higher, then it really kind of blew out here on solid earnings and it stayed up. The stock didn’t give you much reversal at all. Over the past several days you can see that we got a pullback right to the 50-day moving average, the red line. This is a pretty steep sell-off. There are, let’s just say, ample traders who are trapped in this stock. At $40.00 it looked pretty good, right? Well 35.00, maybe not so much. But, the stock has now rebounded, volume heavier than average today.
Here is what you can do: You can make kind of a synergistic trade here. SolarEdge ( NASDAQ: SEDG ) is likely moving higher tomorrow. You can keep a stop just underneath the 50-day moving average so this gives you a pretty low-risk entry. I am not really sure that I would anticipate a move above 40.00. If I told you that was the case, honestly, I would be guessing and I am not going to insult your intelligence that way. I am just saying this: The uptrend is intact. The stock got ahead of itself here. Ideally, we would like to see it kind of trade sideways for a bit more. It could even be here for another several weeks. But for the time being this is back at support, one, two, three days in a row the stock held above 33.00 so you can be buying the stock right now. Keep about a 5 percent stop; you don’t even need that much on it and make some money on it.
And then the other one is First Solar ( NASDAQ: FSLR ). The company reported great earnings, which is why the stock was up today, right? Yesterday this is how the stock looked: It was pouring out of a volatility squeeze on pretty heavy volume. There are a lot of traders that were getting out of this stock, just exiting the stock before earnings and then, oops, they reversed themselves. So this would be a stock that you can look at in conjunction with SolarEdge ( NASDAQ: SEDG ).
I would suggest putting in an alert right at about 62.50. You put your alert at 62.50 and then if that alert is hit that is when the stock is likely to break out and frankly, you get a twofer. You are buying SolarEdge ( NASDAQ: SEDG ) and you are buying First Solar ( NASDAQ: FSLR ) on these bullish moves and you are probably going to make some good money on both of them. Just make sure you protect your positions with reasonable stops, not too tight but not so loose that if they do get hit you are booking a large loss.
Free Chart