SolarCity Corp. (NASDAQ: SCTY)
SolarCity Corp. News & Technicals
Shares of SolarCity Corp. (SCTY) took a beating yesterday after the state of Nevada decided to implement rules that drastically affect the solar industry. The new rules will make it more expensive for private users and businesses to utilize the benefits of solar energy and, as a result, SCTY has pulled all business out of Nevada, which will cut hundreds of jobs. According to TheStreet, Bernstein analyst Hugh Wynne rates shares of SCTY as a “Sell” because of “The high marketing and development expenses associated with SolarCity’s extremely rapid growth in installations, and the company’s expansion into manufacturing, have already created significant cash flow pressures.” Shares of SCTY had one of its worst days cutting nearly 13% off the share price with a close at $37.12. We should see some support come in at $36.00 and $34.65 while resistance will be met at $36.15 and $38. We’ll have to keep an eye on these shares but from the looks of it shorts will be in control for the near future.
SolarCity Corp. engages in the business of renewable energy services. It offers installation, ongoing monitoring and repair services of solar energy systems in the U.S. The company provides services to homeowners, businesses, schools, non-profits and government organizations. SolarCity was founded by Lyndon R. Rive and Peter J. Rive on June 21, 2006 and is headquartered in San Mateo, CA. (MarketWatch)