Feeling the Heat and Going Long SunPower

| About: SunPower Corporation (SPWR)

SunPower (SPWRA) was a steady upside mover in Thursday's after-hours trade, up 6% at 18.51, and with a strong Q4 report in the can and a solid history of adding to earnings-driven after-hours moves in next-day trade we're looking to go long on the shares early on Friday.

SPWRA has recorded an earnings-driven after-hours gain in 6 of the last 12 quarters tracked in our MT Pro database. Also, 66.7% of the time (4 out of 6 times) the stock followed-through in the same direction by the close of the next day's regular session compared to the Extended Hours "effective close."

When it followed-through, the price closed further in the same direction on average by 7.8% (in four events) from the "effective close."

The steady performance in the wake of evening upside trades would have us looking at potential long plays on SPWRA in Friday's trade. Early buyers may want to peg possible entry points between 18 and 18.50, an area that could serve as a near-term base support through early day trade and perhaps see some lift back into the 18.50 to 18.75 area.

SPWRA soared to an early after-hours high of 19.87 Thursday night, but it was hit by firm downside momentum off this top, dropping the shares back to plus-side levels between 18 and 18.85, a range where it stayed through the bulk of its after-hours action.

A pre-market open Friday may have potential near 18.50 to 18.75.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.