As many of you know based off my StockTwits feed, $RUN (SunRun) has been a favorite of mine for short term swing trading. I have been in and out of this stock for the past few weeks with great success. Back in November I first got in this stock at a support level formed March of 2016, 4.85 and traded it up to 5.15. I recently saw this again on my scanners two weeks ago in early March of 2017. It was dropping to 5 again and I could see it wanting to go back to the support level. Not wanting to miss an opportunity, I began a position at 5.05 and two days later it drops to the bottom I had found months ago of 4.85.
Having bought only a 10% position of the 20% max of my portfolio I allow to allocate to each holding I added another 10% to bring my average down to 4.96. RUN continually shows support at about $5, dropping in a 3% range of it (my ideal swing trade range). What I looked for, constant support that held around $5.00 over the past year, never crashing under for more than a few days at a time which only opens up a better buy opportunity.
Sitting in my low average I was planning on waiting for a few weeks before selling, but a day later the price went up to $5.15, a nice 3% swing trade that I could get in and out of. Knowing that the breakout from the support zone at $5 hasn’t occurred, I could buy back in at $4.99 again. This time I held until today, selling at $5.38.
My plan was to watch, it crosses under the lower Bollinger band for a few days in a row and I bought initially at my arrow, seeing the RSI sitting at extremely oversold and the MACD signal getting ready to turn over in a bullish manner, I initiated my buy. I sold after the initial spike, and bought back in on the MACD cross. The true bullish signal that showed me this would run and I should hold for longer than my usual 3%.