Last up is $5 billion solar and semiconductor stock SunEdison (SUNE). SunEdison has been a big momentum mover in 2014, rallying hard as the rest of the solar space heated up this year. But now, shares of SUNE are starting to look "toppy."
SunEdison is currently forming a double top, a bearish reversal pattern that sounds just like it looks. The double top is formed by a pair of swing highs that max out at approximately the same price level. The sell signal comes when the trough that separates the two highs gets violated. For SUNE, that breakdown level is right at $19. A drop below $19 means that it's time to be a seller (or go short).
The double top in SUNE has been forming in the short-term, and that means that it also has short-term trading implications; if there's a silver lining to this stock's bearish price action, that's it. Support at $14 could be hit by the time buyers step back into shares, so if you're thinking about being a buyer, your best bet is to wait for this stock to catch a bid again.To see this week's trades in action, check out the Technical Setups for the Week portfolio on Stockpickr. -- Written by Jonas Elmerraji in Baltimore.
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