Solar Stock Could Overcome Technical Ceiling

The security is already up more than 41% year-over-year

Fernanda Horner

Digital Content Manager

Jan 23, 2023 at 2:41 PM

SEDG

Solaredge Technologies Inc (NASDAQ:SEDG) is up 5.9% to trade at $312.14 at last check, likely enjoying broader market tailwinds. The security has fared well of late, up 41.5% year-over-year, though a ceiling remains at the $330 level. Traders have reason to believe today's rally may have legs, too, as the equity has pulled back to a trendline on the charts that has historically bullish implications.

Digging deeper, Solaredge Technologies stock recently pulled back to its 320-day moving average. According to Schaeffer's Senior Quantitative Analyst Rocky White's most recent study, SEDG saw six similar signals during the past three years, and was higher one month later 67% of the time, averaging a 7.6% pop. A similar move would place the equity back above $335 -- well above that previously mentioned ceiling.

SEDG 320 Day

Now looks like a good opportunity to weigh in on the security's next move with options. This per its Schaeffer's Volatility Index (SVI) of 66%, which sits in the relatively low 26th percentile of readings from the past year, suggesting options traders are pricing in low volatility expectations.

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