Back in the 2008 time zone, solar stocks hit all time peaks and then crashed magnificently to earth. All supernovas. First Solar ($FSLR) crumbled from a high of 317 to a low of $11 by the middle of 2012. Sun Power ($SPWR) went from $164 to a low of $3.71 just a year ago, not even.
So the question I ask is, was that the fake move and are we now embarking on the “real” move? Not sure, but money is chasing this sector right now. How long it will last before they get bored and rotate somewhere else is anyone’s guess.
Whatever happens six months or a year from now is an unknown, but here are two names that are setting up bullishly. Personally I think it will go the way of the Betamax, but what do I know.
Stocktwits is all “atwtter” with SunEdison ($SUNE) and with good reason. The chart is setting up beautifully and the underlying technicals are setting up bullishly.
The daily chart is showing a bull flag after the stock broke out with volume last week. Looking for 25-26, then higher.
$FSLR is also in a bull flag and is right underneath downtrend line resistance. A move through 70 with volume gives you a target of mid- high 70’s.
Remember that many breakouts fail the first time, but entry on the pullback (back to breakout spot) is a good entry point.
Good luck next week.
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