Swing Trade Idea (SEDG) – September 9, 2022
Our bearish trade for Friday, September 9th is SolarEdge Technologies Inc. (SEDG). SEDG is part of the Technology Sector, which has performed at -6.77% over the last month, with SEDG overperforming relative to its sector at 0.49% over the same period.
SEDG had a strong rally into an area of resistance at $315 and is indicating some exhaustion. As strength is at a turning point, we expect that SEDG will likely respect this level and retrace lower. Also considering its overperformance relative to its sector, SEDG could correct this trend toward the downside. This provides a good risk/reward bearish entry.
As a close, if SEDG were to trade above $315 for multiple days, this would invalidate our analysis and focus cutting losses on the trade. We also consider cutting losses on this options trade if the value of the vertical spread moves below $8.7.
