Posts tagged ‘MEMC’

April 9, 2011

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.

March 31, 2011

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.

 

 

 

 

 

 

 

 

 

 

 

 

March 28, 2011

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.