Tonight’s
stock is a great looking chart that is well suited for trend following
traders. The solar stocks as a group are starting to gain some serious
traction. That is precisely when you want to take a closer look at the
sector. My job as a trader is to seek exposure to the strongest stocks I
can find.
The first step is to identify a strong sector like solar. The next
step is to look for stocks either trading at an all time high or making
new 52 week highs. The goal is to eliminate candidates that might run
into trouble due to
Overhead Resistance.
SUNE – Sunedison has already taken out immediate
overhead resistance and offers almost clear sky potential. Overhead
resistance dating back several years typically has much less of an
impact on a stock’s future price performance. That said, SUNE is
displaying huge pattern pressure and is now starting to develop
momentum. Overall the technical picture is very constructive and SUNE
is offering one of the most bullish chart set-ups within the solar
industry.
Click on the SUNE – Sunedison chart to enlarge:
The weekly SUNE chart has been trending higher for almost 2 years,
the initial thrusting move. Then it consolidated for almost 1 year. Now
SUNE has broken out again, printed a new 52 week high and from a purely
technical perspective the price target area is the 40 – 50 $ price range
drawn into the chart. As you can see I am using past pivot points as
the starting point to draw the horizontal trendlines defining the target
range channel.
Conclusion: SUNE – Sunedison offers great potential
for traders with a trendfollowing mind-set. Ideally the stock should
steadily climb higher mimicking the ascent of its initial thrusting
move.
- See more at: http://www.tischendorf.com/#sthash.BtK3ioe7.dpuf
Tonight’s stock is a great looking chart that is well suited for trend following traders. The solar stocks as a group are starting to gain some serious traction. That is precisely when you want to take a closer look at the sector. My job as a trader is to seek exposure to the strongest stocks I can find.
The first step is to identify a strong sector like solar. The next step is to look for stocks either trading at an all time high or making new 52 week highs. The goal is to eliminate candidates that might run into trouble due to Overhead Resistance.
SUNE – Sunedison has already taken out immediate overhead resistance and offers almost clear sky potential. Overhead resistance dating back several years typically has much less of an impact on a stock’s future price performance. That said, SUNE is displaying huge pattern pressure and is now starting to develop momentum. Overall the technical picture is very constructive and SUNE is offering one of the most bullish chart set-ups within the solar industry.
The weekly SUNE chart has been trending higher for almost 2 years, the initial thrusting move. Then it consolidated for almost 1 year. Now SUNE has broken out again, printed a new 52 week high and from a purely technical perspective the price target area is the 40 – 50 $ price range drawn into the chart. As you can see I am using past pivot points as the starting point to draw the horizontal trendlines defining the target range channel.
Conclusion: SUNE – Sunedison offers great potential for traders with a trendfollowing mind-set. Ideally the stock should steadily climb higher mimicking the ascent of its initial thrusting move.
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