With oil rebounding and energy prices across the board painfully high, we are keeping an eye on alternative energy sources. In general, they haven’t seen the breakout we would expect as prices at the pump and to keep homes running start to hurt family budgets.

One ticker popped up on scans and it is a favorite of the solar stocks. It has the makings of a breakout but has a couple more signals to confirm it as a high probability trade. Here is the chart and the signals we are going to look for as we add this to the watchlist.

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We are waiting for that confirmation of the crossover on the MACD and also want the RSI to get above 50. What makes FSLR so tempting is the force that it has when it reverses. You can see on the chart when it breaks out of the downtrend, it really takes off. In may it lasted a full month and in Aug it was almost two weeks.

We thought it was repeating that move in early Sept but it faked the break out and fell deeper.

The take away from FSLR’s personality is that when these breakouts happen, there is time to let them provide a solid confirmation before jumping in. That is exactly what we are looking for.

Keep learning and trade wisely,

John Boyer

Editor

Market Wealth Daily