CHARLOTTE, N.C. ( Stockpickr) -- When a a stock such as SolarCity ( SCTY) surges 23% to $47.44 on a Friday morning, there must be a reason. Let's approach this favorable long trade with a blend of technical and fundamental analysis.>>Why I'm Sticking By Dow 55,000 First off, you do not want to short this stock. I am seeing it as a trade from the long side with an entry of around $42. SCTY has 25% of the float that is short, and while many of these shorts may have covered today, I could see the level increasing back to or even surpassing 25% as the stock sees higher prices, pushed by stubborn hedge fund managers who see "no future" for the stock and refuse to believe that charts that are rising continue to rise.
>>5 Big Stocks to Trade for Big Gains Many of these companies do equity offerings at the top of the stock's move to raise cash to grow the company further. Though this could pull the stock down, it could be a great long-term move for growth. SCTY on a pullback to $42 and finds support there could be a great add to your portfolio. -- Written by Ben Brinneman in Charlotte, N.C.