Despite recent market weakness, this stock is moving higher.
In fact, it’s breaking out of a two-year consolidation, which is a common pattern before massive moves.
Plus, it’s in the ‘hot’ sustainable energy business.
There are 3 key price levels that you should focus on right now to identify a good momentum trade.
1. The 2018 high
2. The 2019 high
3. Last Thursday’s high (3/21)
The reason these levels are important is that they represent resistance that the stock will need to clear, and breaking them represents good performance relative to the market, which has not cleared any of them.
With the market currently under pressure, you should be very selective about new trades.
If you’re considering a momentum trade, then it should be above 2 of the 3 price levels I’ve listed above.
Today’s trade idea is above all three of these levels.
Hannon Armstrong Sustainable (HASI) broke out to a multi-year high yesterday.
This is a breakout of a consolidation pattern that began in September of 2016, which means this could be the beginning of a big move!
Also, it has had a tighter consolidation over the last 30 days, which is a bullish intermediate-term pattern.
The recent consolidation also gives the trade a better stop loss level.
The breakout occurred over $25.60, and a reasonable buy range would extend up to about $26.10.
The best stop would be under $24, but that is quite wide. A tighter stop would be under $25.
Rick Nartarian, Chief Investment Officer
The American Investor Daily