Swing Trade Idea (SEDG) – August 20, 2024
Our bullish trade for Tuesday, August 20th is Solaredge Technologies Inc. (SEDG) SEDG is part of the Technology Sector, which performed at 1.89% over the last month with SEDG overperformed relative to its sector at 7.16% over the same period.
SEDG has fallen in value since early 2022 as its price was cut down to 1/10 of its original price. Since June 2024 SEDG has held onto an area of support at around $23 – $24 and recently it started to outperform the majority of shares in the Technology Sector. As such, we recommend a bullish Debit Spread that will generate over 100% return when the price bounces back to the first level of resistance at $32.
As a close, if SEDG were to trade below $23 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We will also consider cutting losses on this options trade if the value of the vertical spread moves below $94.