Is Sunrun Is Ready To Go On An Upward Run?

We are long Sunrun (RUN) from a $16.89 entry on June 11. Below is a quick analysis of why we are long and what we are looking for in terms of trade expectations.

A failed breakout attempt above prior highs in late April led to a near 20% correction off the highs in May. From April 30 to May 31, $RUN dipped below the 50-day moving average intraday more than 10 times but always managed to bounce back. In early June, the price began to tighten up while holding above the 50-day MA at (b), which is generally a bullish sign. On June 7, the price cleared resistance at $16.25 and held. Although the close on June 7 wasn’t ideal, the price held above resistance and pushed higher on June 10. We entered on June 11, with a stop below the 50-day moving average minus some wiggle room.

RUN still has some work to do to in the short term as it needs to punch through $17 on volume.

$RUN daily

If RUN can clear $17 on volume, then it could have a decent shot of becoming an explosive mover over a short period of time. What makes us believe that $RUN could become a significant winner?

Many traders stick to daily charts with 6-12 months of price action for analysis, but long term monthly charts work best for locating setups with explosive potential. On the monthly chart below, $RUN has been trading in a tight range for 3-4 months just below the all-time high. However, the price first broke out to new all-time highs in July of last year before stalling, so RUN has been in base mode for 11 months, building up a ton of energy to fuel the next breakout.

$RUN monthly

A breakout to new highs could lead to strong gains of +40% or more in 3 to 8 weeks if market conditions remain stable. Like anything else in trading, there is no guarantee that RUN will run will explode higher [it dropped more than 3% on Friday], but by focusing on as many multi-frame setups as possible we increase the odds of catching a big winner.

We are long RUN.

Disclaimer: Past results are not necessarily indicative of future results. There is a high degree of risk for substantial losses in trading securities. All data and material on ...

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.


Leave a comment to automatically be entered into our contest to win a free Echo Show.