Alternative Energy Stock Could Be a Good Pick for Bulls

The stock just came back within striking distance of its annual highs

Digital Content Manager
Nov 28, 2022 at 12:30 PM
facebook X logo linkedin


Array Technologies Inc (NASDAQ:ARRY) is pulling back from multi-month highs after another runup to its 2022 peak of $24, touched on Aug. 11. While ARRY this level remains elusive, several levels of support are in place, including the equity's 160-day moving average, which launched the shares back up the charts in late-October. Plus, historical evidence suggests that ARRY could topple this level soon. 

This is because these recent highs come amid historically low implied volatility (IV) for the stock -- a bullish combination in the past. Per data from Schaeffer's Senior Quantitative Analyst Rocky White, there have been four similar times during the past three years when the equity was within 2% of a 52-week high while its Schaeffer's Volatility Index (SVI) sat in the 20th annual percentile of of lower. This is true of Array Technologies stock, which also sports an SVI of 75% that stands higher than just 15% of readings from the past year. 

Digging deeper, ARRY has averaged an 18.4% one-month return after these signals, with 50% of these returns being positive. From where it currently sits, a move of similar magnitude would put the security well above the $24 mark at $26.10, marking a fresh annual high. 

Short sellers are hitting the exits, with short interest down 6.8% in the last reporting period. However, there's still room for a further unwinding of pessimism, as the 19.20 million shares sold short makes up almost 13% of the stock's available float, or nearly a week's worth of pent-up buying power. 

The stock could benefit from a shift in the options pits, too. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security sports a 50-day put/call volume ratio that stands higher than all but 2% of readings from the past year. In other words, puts are being picked up at a much quicker-than-usual clip. 

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI