The top flop stock award for the month of October goes to JinkoSolar (NYSE:JKS). November started good, but we may see another flop coming our way.
After 100% jump in September and another 100%+ surge during October everyone expected a correction with JKS shares. Of course, people are, as always surprised with this correction. Mostly late comers. Stupid money, as they call it.
The enormously strong correction of the JinkoSolar share seems to have come to an end. In the last two days, the value has made up a whopping ten percent plus. Competitor SolarEdge (SEDG), a top flop winner of November, could be responsible for this. The company disappointed yesterday with its quarterly figures across the board, so that investors are now turning to the alternative JinkoSolar.
But ask yourself, if SEDG lost 22% in a day, isn’t this something that JKS could see as well?
Is JKS stock bulletproof?
Not, if you ask me. At the lower end of the support zone just above $ 55, the correction has now come to an end. In this heavily traded price zone, there now seems to be a rebound.
The chart also suggests a possible green forecast. Also the stochastics indicator could leave the oversold zone today and thus generate a strong buy signal.
But charts are one thing and reality is something else. The correction just started 2 weeks ago and we are now half way through this correction, new high will not be possible in the next 2 weeks. And if a bad news comes our way in the next 14 days JKS stock could dip even further, maybe in low $40 area.