Trade Ideas: SolarCity Corp. (SCTY)

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

Disclaimer: This page contains affiliate links. If you choose to make a purchase after clicking a link, we may receive a commission at no additional cost to you. Thank you for your support!

Be the first to comment

Leave a Reply

Your email address will not be published.


*

This site uses Akismet to reduce spam. Learn how your comment data is processed.