Sunrun, Inc RUN was trading almost 4% higher at one point on Monday as it continued north in a strong uptrend. On Friday, the home solar, battery storage and energy services provider announced it would expand its SPAN smart home electrical panel program so more homeowners can easily install rooftop solar, home batteries and electric vehicle chargers.
The San Fransisco-based company has benefited from renewed investor interest in the green energy and electric vehicle sectors with SunPower Corporation SPWR trading up about 67% from September lows, while Tesla Inc TSLA has climbed 77% since Aug. 17.
The Sunrun Chart: Sunrun reversed course into an uptrend on Oct. 6 and rose 28% higher into Oct. 13 where it began to consolidate on the daily chart. On Oct. 19, the stock broke up from a bull flag pattern Benzinga called out two days prior and trekked another 23% north to reach Monday’s high of $59.87.
On Monday, Sunrun gapped up slightly higher but profit takers came in which caused the stock to fall down to fill the gap, which may give bulls more confidence going forward. The dip was immediately bought and the stock shot back up and by mid-day Sunrun was attempting to pop over a resistance level at $59.95.
Eventually, Sunrun will need to enter into another period of consolidation because its relative strength index (RSI) is running hot at about 73%. When a stock’s RSI reaches or exceeds the 70% level it becomes overbought, which can be a sell signal for technical traders.
Sunrun is trading above the eight-day and 21-day exponential moving averages (EMAs), with the eight-day EMA trending above the 21-day, both of which are bullish indicators. The stock is also trading well above the 50-day simple moving average, which indicates longer-term sentiment is bullish.
- Bulls want to see consolidation, at least on smaller timeframes, and then for big bullish volume to continue to push the stock up over the higher resistance level while keeping in mind a higher low will be needed within the uptrend. Above the $60 level, Sunrun has further resistance at $63.18.
- Bears want to see big bearish volume come in and knock Sunrun down below the most previous higher low at the $52.92 mark to negate the uptrend. Sunrun has support below at $57.59 and $53.
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