teletuna

Three Reasons Solar Sell-off May Be in Early Innings

Both Republican and Democratic candidates have promoted energy policies that encompass many different energy sources. Drilling does not preclude solar. In fact, both candidates have publicly stated that all forms of energy must be utilized to our country to reduce imported dependence on oil. Solar is no longer pie-in-teh-sky. STP is making HUGE profits as one of the most efficiently run energy companies on the planet. Low labor costs in China are a big part of their success. Recent pullbacks are not a sign of problems, it is a basing for greater things to come. Look at STP's 1-2-3 pattern of higher lows with decreased volume on pullbacks. It will break upward resistance at about 48 and short covering will come into play in a big way. The need for clean energy in China, Europe, and now even more in the US will drive this company's success going forward.

Solar and Oil, Part Deux

You may be correct about the correlation, or lack of it, to oil in the first place. Many solar plays are Chinese based and China stocks are taking a bit of a breather after the Olympics. The big one of course is Suntech Power (STP).

In the case of STP in particular, it is simply forming a basic 1-2-3 pattern with higher lows at about 36, 42, and 44. Provided that it bounces off the latter resistance level, which I believe it will, it is likely to penetrate the upper limit of about 48. Once that occurs, shorts will quickly cover and drive the stock up. You can see the next level of resistance for yourself!