SolarCity (SCTY) had a big jump on Friday when the company offered up encouraging operating metrics and boosted its outlook for next year. The stock saw nice consolidation yesterday as it held above prior pivot high of $45.60. Holding above this level wculd keep its momentum intact for higher prices in the coming sessions. More likely I think we could see some sympathy moves out of other solar names.
First Solar (FSLR) is the biggest solar name and had a strong move yesterday. Watch the pivot of $44.98 from last week’s pivot high for a full gap fill at $45.80.
Trina Solar (TSL) continued to hold the 8-day EMA during the market pull-back, showing extreme relative strength. Look for potential upside follow-through above yesterday’s high of $16.82.
Yingli Solar (YGE) is also holding its 8-day EMA and forming an upper-level wedge pattern. A break above yesterday’s high of $8.06 could lead to upside resolution.
Apple (AAPL) is poking its head through downtrend resistance. A break above yesterday’s high of $497.58 could lead to a retest of the prior resistance at $513.74.
Applied Materials (AMAT) was featured as Marc Sperling’s Trade Idea of the Week yesterday and has a very attractive upper level pattern. The stock is setting up well for some potential upside momentum above yesterday’s high of $18.18 so keep an eye on this trade
Zillow (Z) has a steep downtrend in place and is looking to get back above. The first step is reclaining the 8-day EMA that served as resistance the last three days. Active traders could look into here for possible low-risk entry at $83 area with a stop at $78.40.
Netflix (NFLX) had a monster move after reports the company is in talks with cable companies to include the service on cable boxes. Is there still possible entry? A pull back into $315 area could be a buyable spot, and with a large short interest it could squeeze.
MGM Resorts (MGM) has a tight upper range. Could it play catch up after other casino breakouts (WYNN, LVS)? A break above $20.80 could lead to some upside momentum.
Walter Energy (WLT) is a laggard play that is looking perky. A break above the current resistance of $15.70 could send the stock higher.
Disclosure: Scott Redler is long AMAT, FB, AAPL, AAPL calls. Short SPY