Proterra Pennant Play! Another EV Company Gearing Up For A Move
Proterra NASDAQ:ACTC designs and manufactures electric transit buses and electric charging systems. I am not going to do a big write-up on Proterra, this play for me would be a shorter term swing/breakout play. The company looks solid, their customer base is quite impressive and spans across North America. They are a very diverse company and have established a strong foothold in the heavy-duty electric transportation industry.
Chart: Beautiful pennant has developed over the past 31 days and looks to me like we could rally back to $30 if the market complies. I will be watching ACTC for volume. As can be seen from the chart once it was announced Proterra was going to be merging as ACIC we had a huge rally to $31 and then a cool off with a base forming at $24-$25 range. I will be looking to enter on breakout of the pennant with common stock and depending on the IV I may enter 2/19 $25 calls (currently $1.3/1.5).
If the pennant breaks down watch to see if ACTC finds support at $23 lvl where it has demonstrated a solid bottom already.
Chart: Beautiful pennant has developed over the past 31 days and looks to me like we could rally back to $30 if the market complies. I will be watching ACTC for volume. As can be seen from the chart once it was announced Proterra was going to be merging as ACIC we had a huge rally to $31 and then a cool off with a base forming at $24-$25 range. I will be looking to enter on breakout of the pennant with common stock and depending on the IV I may enter 2/19 $25 calls (currently $1.3/1.5).
If the pennant breaks down watch to see if ACTC finds support at $23 lvl where it has demonstrated a solid bottom already.
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ACTC broke out of the pennant this morning in AH, let's see what it does at open.
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ACTC gapped out of the pennant and then proceeded to sell-off. currently at $24.71. I will be watching for a bounce on the 50 SMA above on the 4h chart to remain in the pennant.
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ACTC did find support on the 100 SMA on 4h chart. Will be watching it the rest of the week.
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ACTC testing the top trendline again during pre-market. lets see if there is follow through today or more strength in pre-market.
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ACTC heading to bottom of Pennant. Tested top trendline two days straight in premarket but failed to hold above.
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sure is tight here, which way are we going to break?!
Trade active:
Started to break below the pennant bottom trendline today. Market has been very weak this whole week. will keep watching ACTC for some volume/price action. All of the major EV players have been taking hits this week except for CCIV. So I will be watching for that sector to get hot again to see if ACTC will be rallying with.
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failure by ACTC which was expected in this market. Hitting the $23 support area. Will be watching $20 area to add some shares at the HVN.
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ACTC still looks strong. failed yesterday with the whole market and jumped right back up. Look for ACTC to start to move with the other big EV/green energy names.