The solars are not one of by bread and butter sectors, but from time to time I revisit them when I see a compelling opportunity. With still somewhat dodgy fundamentals and a ‘cloudy’ (pun intended) future, I rely almost purely on the charts with these guys. The solars look to have put in at least a short term bottom.
First Solar, Inc. (FSLR) looks poised to break a downtrend line on the daily chart with a decent move today. FSLR looks good over today’s high of $135.85 with a target of $142, and then it’s into a gap up to $149. I would use $129 as the out. With FSLR looking to make a move, maybe ti can help ignite some others in the sector that have tight patterns. With the market moving higher and heavy sector rotation, we can look to get some action in some of these small solars.
JA Solar Holdings Co., Ltd. (ADR) (JASO) looks good for a trade above the $7 area for a move up to $8. I would put a stop in at $6.70 if you take this trade.
ReneSola Ltd. (ADR) (SOL) has a tight pattern as well and you could get long here, potentially adding around $9.40-$9.50 for a possible move up to $10.50 and then $11.40. I would put a stop in at $8.85.
Solarfun Power Holdings Co., Ltd. (ADR) (SOLF) looks good to break a downtrend line it has been controlled by for the past couple of months. A move above $8.60-$8.70 is where I’d look to get heavy if volume comes in. Target 1 for this stock is $9.50 and then $10.25. Put a stop in of $8.20.
This type of trade can take time but if you commit with a small amount of capital to watch composure, it could provide a sizable trade.
*DISCLOSURE: Long FSLR, SOLF, SOL, JASO
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