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Charts suggest that the rebound in solar stocks may be genuine

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Solar stocks faced challenges in 2021, with the Invesco Solar ETF (TAN) losing nearly 27% due to its long-term downtrend. However, there are signs of stabilization in TAN, with successful tests of last year’s low and a positive divergence between the weekly MACD and price since the beginning of 2022. Additionally, TAN has confirmed a breakout above the 200-day moving average, suggesting that newly overbought conditions may be sustainable. First Solar (FSLR), a major component of TAN, also confirmed a breakout to a new 52-week high, indicating a long-term bullish trend that could benefit TAN. Looking ahead, resistance on TAN’s chart is at around $55, with a possible extension towards $65 if a breakout above the December high occurs.

Fairlead Strategies offers research on the positive developments in the solar stock sector, providing insights on potential investment opportunities. Their analysis indicates that TAN’s technical indicators are supportive of further upside in the coming weeks, with a potential to break through long-term trendline resistance. The information provided by Fairlead Strategies is aimed at CNBC Pro subscribers and emphasizes the importance of seeking advice from financial or investment advisors before making any decisions. The material also includes disclaimers about the accuracy and timeliness of the information, as well as the speculative nature of financial instruments mentioned.

The DeMARK Indicators have provided a counter-trend ‘buy’ signal for TAN, contributing to the current relief rally and supporting another month of upside follow-through. The momentum divergence in TAN, coupled with the confirmed breakout above the 200-day moving average, indicate a positive trend that could be sustained. FSLR’s breakout to a new 52-week high adds to the bullish outlook for the solar stock sector, potentially serving as a tailwind for TAN. The next resistance level for TAN is around $55, with a possible extension towards $65, supported by technical indicators and market trends.

Fairlead Strategies caution against relying solely on their material for making investment decisions, emphasizing the speculative nature of financial instruments and the need to consider individual circumstances and seek advice from financial advisors. The research provided by Fairlead Strategies focuses on broad-based indices, market conditions, and technical analysis to evaluate demand and supply based on market pricing. The material is subject to revision and may not be suitable for all investors, requiring independent decisions based on specific investment objectives and financial circumstances. Fairlead Strategies disclaims any liability for losses arising from the use of the information provided, and highlights the importance of thorough due diligence before making any financial decisions based on the material.

In conclusion, the solar stock sector has shown signs of stabilization and potential upside, with TAN and FSLR displaying positive technical indicators and breakout developments. Fairlead Strategies offers research on these trends and provides analysis for CNBC Pro subscribers, emphasizing the need for individualized financial advice and caution when making investment decisions. The material provided by Fairlead Strategies serves as a guide for potential investment opportunities in the solar stock sector, highlighting the importance of considering personal circumstances and seeking independent financial advice before making any decisions.

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