SolarCity Corporation (NasdaqGS: SCTY)

SolarCity Corporation designs, manufactures, installs, maintains, monitors, leases, and sells solar energy systems to residential, commercial, government, and other customers in the United States. It offers solar energy systems; solar lease and power purchase agreement finance products; mounting hardware for photovoltaic panels; and related software, as well as develops a proprietary battery management system, which is designed to enable remote, bidirectional control of distributed energy storage that can provide benefits to customers, utilities, and grid operators. The company also sells electricity generated by solar energy systems to customers.

Take a look at the 1-year chart of SolarCity (NASDAQ: SCTY) with the added notations:

SCTY has been trending sideways since the fall of last year. Along the way, the stock has repeatedly found support around $46 (green). Now that the stock appears to be falling back down to that support level again, traders might be able to expect some sort of bounce. However, if the $46 support level breaks, lower prices should follow.

The Tale of the Tape: SCTY has an important level of support at $46. Traders could enter a long position at $46 with a stop placed under the level. If the stock were to break below the support a short position could be entered instead.