3 Reasons to Buy the Dip on This Solar Stock
Key takeaways
- SEDG Solar Edge Technologies Inc (NASDAQ:SEDG) stock has pivoted into the red today, down 1.8% to trade at $51.42 after opening the session higher.
- This setup has appeared 10 times over the last decade, after which the stock was higher one month later 60% of the time, averaging a 13.4% gain.
- Despite an 80% year-to-date gain on the year, bearish bettors have piled on during the pullback, with short interest up 7.3% in the two most recent reporting periods.
SEDG Solar Edge Technologies Inc (NASDAQ:SEDG) stock has pivoted into the red today, down 1.8% to trade at $51.42 after opening the session higher. The alternative energy stock has taken a 32% haircut this month and is 36% off its May 29 two-year high of $81.25. The good news is that if past is precedent, the pullback could have historically bullish implications.
According to Schaeffer s Senior Quantitative Analyst Rocky White, SEDG is trading within 0.75 times its 80-day moving average s 20-day average true range (ATR), after spending at least 80% of the previous two weeks and 80% of the prior 42 trading sessions above that trendline.
This setup has appeared 10 times over the last decade, after which the stock was higher one month later 60% of the time, averaging a 13.4% gain. A move of similar magnitude would have SolarEdge back above $60.