The solar sector is showing top relative strength with explosive, high volume breakouts. Here’s a quick chart walk-through of the leading Solar ETF, and a top solar stock to buy on a pullback now!
Since 2002, relative strength trading has been the key Morpheus secret to finding the top stocks in any market.
Currently, the solar energy sector is showing high relative strength with powerful breakouts in leading solar stocks–and we want to help ensure you don’t miss out!
Continue reading for a quick look at the red-hot solar energy sector and the best solar stock you can’t afford to miss!
Solar ETF ($TAN): A hot proxy for the solar energy sector
Solar stocks scored an impressive round of trading last week, with several breakaway gap ups on big volume in $ENPH, $SEDG, $FSLR, and $ARRY.
Solar ETF ($TAN) closed with a weekly gain of +18.8% on Friday–its biggest one-week advance since 2015!
The strong price action in $TAN was confirmed by its highest volume week of the year (double its average weekly volume).
Last week’s advance significantly improved the weekly chart pattern, which has now started a new uptrend with a higher high and higher low.
The price of $TAN broke out above a weekly downtrend line, and also reclaimed of its 10, 30, and 40-week moving averages:
Enphase Energy ($ENPH) jumps +18% just two days after entry
After noticing high relative strength in the solar sector, we began scanning individual charts for the best stock in the solar sector to buy.
We then listed Enphase Energy ($ENPH) as a buy setup for subscribers of our nightly swing trading report.
The exact commentary and chart below are from the July 27 issue of The Wagner Daily.
$ENPH closed 10% higher in after-hours trading in reaction to earnings.
If the action holds up through pre-market trading, then it will likely open above resistance in the $225 – $226 area.
Aggressive traders may look to buy over the 1-2 minute high on strength with reduced size if volume is strong:
The $ENPH buy setup triggered for entry that day, after the price gapped sharply higher on the open.
Since then, $ENPH has zoomed steadily higher.
As of the July 29 close, $ENPH is already showing a gain of +18% just two days after our entry in the Wagner Daily stock portfolio:
After an explosive week of gains, $ENPH has declared itself as a must-own stock with the potential to become a massive winner if market conditions continue improving.
If you’re not already in $ENPH or other top solar stocks, then don’t chase!
Rather, wait for lower-risk pullback entries, such as retracements to 10-day moving average support levels.
As usual, we will trail our $ENPH stop higher to maximize profits and secure gains as the price moves higher.
Paid subscribers will receive a Trade Alert to notify of any updated stop prices, as well as any additional trade entries in the solar sector.
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Image and article originally from morpheustrading.com. Read the original article here.