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.

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