Invesco Solar ETF Shining
Gary S. Morrow | Apr 22, 2021 12:18PM ET
The Invesco Solar ETF (NYSE:TAN) is surging today. The index is up more than 4% as it begins to lift off major support near $81.00. This news item is certainly aiding today’s jump: Biden pledges to cut U.S. greenhouse gases 50% by 2030 — with major implications for oil and gas sector.
From the 2020 lows to the January peak TAN rose 500%. The pullback during February/March retraced roughly 40% of this powerful rally.
TAN is tracing out a divergent low in its daily MACD. At the January high TAN reached its highest overbought levels (weekly MACD) in history.
TAN’s top five holdings are: Enphase Energy Inc (NASDAQ:ENPH), SolarEdge Technologies Inc (NASDAQ:SEDG), Xinyi Solar Holdings Ltd (HK:0968), Sunrun Inc (NASDAQ:RUN) and First Solar Inc (NASDAQ:FSLR)
Earnings due this month: ENPH (4/27/PM) FSLR (4/29/PM)
We consider TAN a low-risk buy near current levels. On the downside, a close back below $80.00 would be a clear warning sign.
Note: We are long TAN in some managed accounts.
You can read Gary S. Morrow's original post here .
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