SEDG long
Updated
SEDG had massive selloff today and down 20%.
The monthly, weekly, and daily all show SEDG in an up channel. The sell off puts SEDG at the bottom of the up channel. If it holds support, this should be a great long. Fib extension shown BUT only applies if this is the true U-turn. If so and holds support right here at the bottom of the channel the fib extension would be to $430. Huge upside.
ENTRY: Wait for a counter-trend line break on the Daily Chart. (Shown in light pink).
LIMIT: Slightly below the bottom of the channel.
EXIT: Fib extension. (Tentatively $430 for position traders).
Extra assurance: Fundamentals: This is a solar company that makes inverters. The inverters are industry standards and awesome. They have YOY increasing revenues and gross profits. Todays sell-off was due to "lowered guidance" and markets love to punish for weak future guidance. THEREFORE, with strong fundamentals and an aligned technical chart analysis, this seems to be a great investment opportunity. Furthermore, with Biden favored to win, the green energy sector will likely benefit.
The monthly, weekly, and daily all show SEDG in an up channel. The sell off puts SEDG at the bottom of the up channel. If it holds support, this should be a great long. Fib extension shown BUT only applies if this is the true U-turn. If so and holds support right here at the bottom of the channel the fib extension would be to $430. Huge upside.
ENTRY: Wait for a counter-trend line break on the Daily Chart. (Shown in light pink).
LIMIT: Slightly below the bottom of the channel.
EXIT: Fib extension. (Tentatively $430 for position traders).
Extra assurance: Fundamentals: This is a solar company that makes inverters. The inverters are industry standards and awesome. They have YOY increasing revenues and gross profits. Todays sell-off was due to "lowered guidance" and markets love to punish for weak future guidance. THEREFORE, with strong fundamentals and an aligned technical chart analysis, this seems to be a great investment opportunity. Furthermore, with Biden favored to win, the green energy sector will likely benefit.
Note
Depending on how you draw your trendline, for day/swing traders this trade is on!(position traders may choose to wait a few weeks for confirmatory weekly (or monthly) counter trend line break and follow through.
Note
Got out of my position here at over 50% gain! (Not bad for 50 days). Getting close to the top of the channel and some volatility may be coming (had a VIX spike randomly a few days ago). I think this may drop down some so i got out. Happy trading!
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