Before we get to our latest idea, we are removing ManpowerGroup (MAN) from our short ideas because its decline is moderating near its 200-day moving average.
SolarEdge Technology (SEDG):
SEDG looks at risk of a bigger pullback within its long-term trading range, noting it recently flashed a weekly MACD “sell” signal that reflects a loss of intermediate-term momentum. Per the chart below, previous weekly MACD “sell” signals have resulted in tests of the bottom of the trading range.
SEDG has recently broken initial support from the daily cloud model (not shown) and has negative short-term momentum. Additionally, the stock has a breakdown and loss of momentum in its ratio versus the SPX, supporting a phase of underperformance relative to the broader market.
A downside target for SEDG is clearly defined by the bottom of its long-term trading range, near $200. Initial resistance is near $308, so we would close out short positions if SEDG logs two consecutive daily closes above that level.
SolarEdge Technology (SEDG, $290.25):
Target: $200
Stop-Loss: $308