Have you been on the same emotional roller coaster ride lately that I’ve been on? You know, the one where you think you’ve figured out how to swing trade solar stocks just to get your ass kicked the next day as it spirals down to your stop loss. The ride wasn’t even long enough to make you vomit. Don’t get me wrong, the nice, smooth climb up from March to May was quite exhilarating with few twists and turns along the way. However, once we reached the summit, the laws of gravity quickly pulled us down through numerous hair-pin turns, drops, and loops.
Is the downward spiral finally over…at least temporarily? Ten trading days ago, most solar stocks found support and have been trending up ever since. Not a lot of attention has been made to this, but look at the daily charts from many in the industry and you’ll wish you had taken at least a small position in your favorite solar because the support was segment wide.
Now we’ve reached a new milestone. Ten days ago it was was industry wide support. Now we’re looking at resistance. More specifically, we’re looking at MA50 and a handful of solar plays banging against it WITH volume. Is it time to climb comfortably back in our seats for another smooth ride back up to May highs? Or, does big, bad MA50 have other ideas?
Here are my top MA50 resistance solar stocks that I’ll be watching Wednesday. I’ll likely pick my favorite to position long in if MA50 gets broken.
Check out these daily charts: