Sunrun Inc.

Sunrun Inc. (NASDAQ: RUN) is engaged in the development, sale, installation, maintenance, and ownership of residential solar energy systems in the United States. The company delivers battery storage solutions with solar energy systems in selected markets and sells services to commercial developers. Noted below are the key price indicators for the stock:

Technical Observation (on the Weekly Chart)

RUN's price has broken a downward sloping trendline by an upside and taking support from a rising trendline for the past 1 month, indicating the possibility of upside movement hereon. Moreover, the momentum oscillator RSI (14-period) is showing a reading of ~44.761 level and consolidating around the mid-point. However, the current market price is trading below the trend following indicator 50-period SMA, which may act as the resistance level for the stock.

Now the next resistance level for the stock appears at USD 27.50 and this may get tested in the coming sessions. A further breakout above USD 27.50, backed by volumes, may extend buying in the stock.

As per the above-mentioned price action and technical indicators analysis, a ‘Speculative Buy’ rating has been given on Sunrun Inc. at the close price of USD 24.61 (as of July 19, 2022). Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Note 1: Investment decision should be made depending on an individual’s appetite for upside potential, risks, and any previous holdings. This recommendation is purely based on technical analysis, and fundamental analysis has not been considered in this report.

Note 2: Related Risks: This report may be looked at from a high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 3: How to Read the Charts?

The Green colour line reflects the 21-period moving average while the red line indicates the 50- period moving average. SMA helps to identify existing price trend. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The Black colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The Blue colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps in easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavorable movement in the stock prices.

The reference date for all price data, currency, technical indicators, support, and resistance levels is July 19, 2022. The reference data in this report has been partly sourced from REFINITIV. 

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

RSI: Relative Strength Index

USD: United States dollar 

Note: Trading decisions require a thorough analysis by individuals. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.