Posts tagged ‘Reversal’

April 3, 2011

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.

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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.