Solar module maker Jinkosolar (JKS) is gearing up to report third-quarter earnings results ahead of opening Tuesday, November 30. Equities are lower prior to the event, last seen down 1.3% at $57.42. Below, we’ll take a look at JKS’s technical setup, and trace its past few post-earnings activity to figure out where the equities could be headed.
JinkoSolar stock recently rose above the $41 level, touching a nine-month high on November 22 above the $66 area. However, the equities have lost over 6% in the past few days, and have slipped below the earlier 30-day support. normal speed. Over the longer term, JKS is down 7.6% year-on-year.
The stock has had a history of mixed post-earnings reactions over the past two years. Over these past eight sessions over the next eight days, JinkoSolar stock saw positive returns at half-time, including a 21% pop back in September 2020. Equities swing an average of 8.2% after earnings, regardless of direction, although this time around options players are pricing in a big move of 13.3%.
Options traders have been very optimistic over the past 10 weeks. On the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and the NASDAQ OMX PHLX (PHLX), JKS has a 50-day call/put volume ratio of 4.11, up from its previous 12 to 97% reading. month. This indicates that calls are being picked up at a much faster clip than usual.
Short sellers are already hitting exits in huge numbers, though there is still a lot of pessimism to uncover, which could take the shares higher. Short interest fell 13.2% over the last two reporting periods, but the 5.12 million shares sold short still make up for a considerable 11.3% of the stock’s available float.