Looking for Day 3? Let’s see if the sun shines on SolarEdge ($SEDG) (December 04, 2019)

by DAN SEDG 
I want to look at SolarEdge ( NASDAQ: SEDG ) today. Yesterday this stock broke out of this little squeeze pattern here. I was, and I still am, looking for more, looking for a nice move higher. This was a fairly high volume breakout, so then today we had a little gap up first thing in the morning, I’m sure it just trapped people that were looking for a follow-on move, and then traded down.

If you look at where the stock traded in relation to yesterday’s range you will see, this is the close and this is the open. This thing traded not even down to the halfway point in yesterday’s open and close range here. There is still buying here, this is a good sign. Yes, the stock still closed down on the day but it printed a higher intraday high than yesterday and a much higher intraday low than yesterday. The open was higher than yesterday’s close and the close was not that far off of yesterday’s close.

What I am saying is, this is actually, in my view, a continuation pattern. I don’t know, I am telling you right off the bat, I make no predictions, that’s for Dennis Gartman and apparently he’s retiring so we’ll all miss him. Good luck to you Dennis and all of you, because I know it’s always we, we need to do this, we need to do that, so I am wishing you good luck, all of you.

What I am looking for here though (I don’t know why I went into that), that’s really support. And so if the stock moves above, I would mark it yesterday’s open, if the stock moves above 88.50, that’s your time to add to your position. If it moves above 88.50 it sure shouldn’t have any problem moving above today’s high of 89.27 so you might as well get a 75 percent start on it.

Again, if the stock moves above 88.50, that’s your time to be adding to your position. I have a couple of different positions on this, both stock and options, and this is what I am looking for, I am looking for that kind of move.

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