SOLR’s Wedge

SOLR’s wedge recently experienced normal selling pressure considering the trend.  Although the stock ended up with a bullish hammer, you will still need a confirmation before trading this candlestick as a reversal.  The RSI is below 50, which normally indicates a downtrend while the MACD has moved below the 9.  The solars have been taking it’s share of “shading” across the board, so we’ll need to see this group recover before expecting the uptrend.

On the other side of the mono-poly playing field is the GT Solar, known for it’s polysilicon processes.  As previously discussed with MEMC, there are advantages to using either mono or polysilicone cells, but I believe that only one will end up outperforming the other.  It’s just up to technology.   As with most American companies, part of the success will rely on the SOLR’s production ability in China.
I prefer SOLR over WFR because of the volume the company trades at.  Moving averages have WFR in a better position, but I prefer to exclude spikes, which puts SOLR at better volume.

WFR’s Gaps

We’ve already identified the two gaps that we’ll need to be concerned with for WFR in previous posts.   The second tiny gap has already been filled and I will note that the first gap from February needs to be tended to.  Caution on the need to fill this gap.  Until then, pray for support.  Target 11.90.

STP’s Reverse

As mentioned previously, STP’s H&S was showing plenty of signs for a dive and I called for a reversal.  Friday’s market confirmed it.  While many of the industry’s stock fell, STP took one of the bigger hits.  Difficult to read the next move, so we’ll need to see how the industry recovers and then take it from there.

Let There Be Light…with Veeco

I’ll be adding Veeco Instruments to my watchlist.  VECO is in a very strong wedge and is about to test the last PSAR.  A break past that will bring a nice, continued updward trend!

 

 

 

 

 

 

 

 

 

 

 

Veeco Instruments specializes in Solar and LEDs. Veeco’s solar approach is more centered around manufacturing efficiency for concentrated and thin-film applications.  With LEDs, Veeco’s claim to fame is their MOCVD (metal organic chemical vapor deposition) systems.  A focus on manufacturing efficiency aids in the reduction of cost.

Better cost, more usage.

STP’s Doji at the Top

I’m calling a pause on STP’s head and shoulders.  Today’s test of what I felt is the point of resistance was weak, ending up with a doji at the top of a trend.  Therefore I’ll call it.  Reverse.  (But can I say I hope for a break in the neck line?

 

WFR’s Doji

WFR tested past the resistance noted previously. The stock ended up with an engulfed doji, which normally is an indication of reversal in an uptrend, but do we even consider the past few marks an uptrend. I’m considering this doji just a break before the move.  I like to trade the MA crosses and in this case, the 10 is above the 13 which, in WFR’s case, is usually a call to move up.
I suspect we’ll see an move up because of the two, but as the first WFR analysis called for, I will be waiting for the PSAR confirmation before I enter. If you notice, the PSAR was never cleared for the next uptrend.

STP – Inverse Head n Shoulder

Take a look at STP Suntech Power Holdings Inc’s chart.  The first thing you’ll notice is the inverse head and shoulders which is setting up nicely and almost completing the last shoulder.  Another favorite of my is the Three White Soldiers.  After a nice decline, this set up leans toward a good trend.  But as noted on the chart, let’s wait for the break past the 9.90 area.

ABAT Reminder and CE Scan Clean Up

With ABAT’s nose dive comes my reminder of refining the Clean Energy Index that I run my scans on.   With that, I will be removing stocks below $5 from my reviews.  This removes the following companies:

Advanced Analogic Technologies Inc
Advanced Battery Technologies,
Active Power, Inc.
Baldor Electric Co
Ballard Power Systems Inc.
Broadwind Energy
Capstone Turbine Corporation
Emcore Corporation
Energy Conversion Dev
Fuelcell Energy, Inc.
Ener1
Satcon Technology
Solarfun Power Holdings Co.
Valence Technology, Inc.

If you’re unaware of what ABAT is experiencing, take a look at this article:

The Rosen Law Firm Announces Investigation of Securities Claims Against Advanced Battery Technologies — ABAT

With some of the more established stocks, I don’t really let statement scandals worry me.  It never surprises me.  At least with the heavier stocks, there’s room for recovery.

MEMC’s Spinning White Top – 13.10

As previously mentioned, WFR is trading at the 13.10 resistance.  A spinning white top confirms the need to hold before taking any action.   Keep an eye on the 50-day at is makes its way across the other MAs.  However, note the 10-day’s move below the 13-day despite bull action.   This brings up the reminder that there is a February gap to fill.

 

 

 

 

 

 

 

 

 

 

 

 

MEMC Channel and Wafers

Take a look at MEMC, ticker WFR.  There are a couple of things that pique my interest.  First off is the strong upward channel that the stock is moving in.  Next, you’ll note that the stock is also in between support and resistance with a 1 point range, but I suspect that the WFR reversal will meet resistance.  This is not a big concern as we still have both the bottom of the channel and the support at 12.   Also worth mentioning are the 50-day crosses.  Let’s keep an eye on the next cross in progress, but do not enter the trade until the resistance is broken and the PSAR is surpassed.

 

The thing to note about MEMC is their focus on monocrystalline silicon processes versus polycrystalline.  This is only a personal opinion, but I believe that as the market continues to drive down the prices associated with solar applications, we’ll soon see a trend where companies will opt to use pure and efficient silicon rather than hybrids or poly’s since price pressures will ease a bit.   Remember, aside from innovative applications, the solar industry aims to increase efficiency and to date, polycrystalline will not provide the efficiency of monocrystalline.  I would like to follow the industry to see how the two processes evolve.  For now, MEMC and its high volume monocrystalline technology is smart solar.