teletuna

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!