TERRAFORM POWER (TERP) How to trade TerraForm Power earnings and swing trade it to next time cycle. #swingtrading $TERP #earnings
The trade set-up in TerraForm is hard to ignore. For a structured swing trade / investment, this one is hard to beat (on other side of earnings) in my opinion. Sure, it may not be the return some traders are looking for, but if it plays like the chart structure is indicating, there’s a 50% or better upside over the next two years and much of that move could be on the other side of this coming earnings or the next.
To trade it, I will wait for earnings. I won’t wait long however. The move is likely to see a decent return in the early time-frame and then play out over the next 12 – 24 months. If it doesn’t transpire this earnings season then I will watch each earnings season forward because a bullish run should occur in this stock based on the time cycle structure of the weekly TerraForm chart.
The move is likely to see a decent return in the early time-frame and then play out over the next 12 – 24 months.
The most likely scenario I have charted below. The two yellow lines are the expected bullish swing trade channel and the red circle is the price target and date that the price target comes in. If the channel does not transpire then simply move the channel over to the next earnings period reporting and watch if the trend transpires at that juncture.
TerraForm reports earnings in just over a week – it’s on high watch for me here.
TERP Earnings Date
Earnings announcement* for TERP: Mar 14, 2019
TerraForm Website: http://www.terraform.com/phoenix.zhtml?c=253464&p=irol-home
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TerraForm Power uses 80% to 85% of its cash flow to pay a dividend, which has a current yield of 6.7%, with the additional funds going to pay down debt or fund growth projects. Long term, management aims to grow the dividend by 5% to 8% annually, which is a conservative target, and could be done with organic growth for the foreseeable future.
Investors who don’t know where to turn in energy today should consider yieldcos like TerraForm Power. The company is stable, pays a great dividend, and avoids a lot of the commodity risks that will make the energy industry a volatile sector in 2019.
TerraForm Earnings Chart Swing Trade Set-Up.
Below is the weekly chart for TerraForm going in to earnings in a week. The structure of this stock chart implies a significant move up in to May 20, 2020 (next year). If the move does not occur as the channel below is drawn then simply move the channel over to the next time TerrForm reports earnings.
The structure of this stock chart implies a significant move up in to May 20, 2020 (next year).
Each horizontal Fibonacci resistance is an area to possibly trim and add above (or you can use the channel support to add and channel resistance to trim your position).
The key horizontal support and resistance marks are at 12.37, 16.76, 21.17 and 25.41 areas.
The key moving average is the 200 MA over head near term on the chart (pink).
It traded last at 12.59 during the regular session on Friday and was up .64% on the day.
Home Depot Trade: Swing Trade and Day Trade.
Home Depot is trading 185.36 pre-market down 2.43% on earnings guidance.
The News Story Link:
Home Depot Misses Q4 Earnings on Interline Charge; Sees Softer 2019 Profit #swingtrading $HD #earnings https://www.thestreet.com/investing/earnings/home-depot-misses-q4-earnings-on-interline-charge-sees-softer-2019-profit-14877506
How to Trade It:
Key Support 174.30 area trading 185’s in premarket so 174’s is quite a ways down, however, I think it is possible.
Key Resistance 191.00 area. Anything under 191 seems short bias to 174 s.
Watch the 182 s on way down (trading box support) and the 200 MA on the 4 hour.
On the day trade side of things, use the horizontal support and resistance levels on the chart for the trade. I will alert as I trade it also.