SolarCity Corp. (SCTY) has only been public for seven months but that hasn’t stopped its stock which soared to an all-time high of $52.77 on May 20, from quadrupling from its initial trading price. SCTY dipped for the first time below its 50-day, located at mid-$36 levels, last month, but quickly reclaimed this key moving average.
Shares of the renewable energy firm chaired by Tesla Motors (TSLA) CEO Elon Musk, who also owns a 28% stake in SolarCity, are now back above $40 and continue to be volatile.
We think an attractive SCTY entrance for momo players would present itself on any pullback below $38. We also think the name will on a short-term basis see the high $40’s. Further follow-through should prompt this one to re-test its record high.
SCTY rose $2.90, or 7.60%, to $40.99 a share, on 2.8 million volume at the close in New York.
Disclosure: No Position