Sunlight Financial ( NYSE:SUNL ) is at major resistance and the RSI is showing bearish divergence. If resistance holds and upward momentum continues into weaken into the Federal Reserve meeting and OpEx next week, I expect this to drop below $3. If it holds well through next week or even breaks resistance, earnings on March 22, 2022 (after hours) may be the plummet zone. There is an extremely small gap between $2.64-$2.65 that is still open, too.
While the company has reported positive news lately (surpassing $6 billion in funded loans), it may not be able to break the de-SPAC curse of trapping bulls. I do like the company long-term, though, but there are a lot of headwinds in the near-term.
If SUNL breaks $4.60, next resistance area is in the $5.30 and it may zoom to the 200 EMA. A lot will depend on whether solar plays pick up steam again as oil/energy prices rise.
While the company has reported positive news lately (surpassing $6 billion in funded loans), it may not be able to break the de-SPAC curse of trapping bulls. I do like the company long-term, though, but there are a lot of headwinds in the near-term.
If SUNL breaks $4.60, next resistance area is in the $5.30 and it may zoom to the 200 EMA. A lot will depend on whether solar plays pick up steam again as oil/energy prices rise.