A few names in the renewables space are starting to heat up. With such a significant market downturn, these stocks are flaring up with higher lows in December.
Canadian Solar (CSIQ)
The new 52-week high in relative strength is very bullish. This is a weekly chart so we need Friday to close up here to lock in the level. The Full Stochastic keeps bouncing off 50 which is a bullish trait. Price is trying to break out and the current level would be the highest weekly close in 13 months. Since the overall market low on December 26th, this stock has rocketed higher! Notice the higher lows and higher highs since July. The PPO has moved into positive ground above zero. That is very bullish as the price tries to make new highs.
First Solar tries to push higher
First Solar is the most known stock in the space for average investors. The stock is trying to make three-month highs this week. The relative strength is breaking out to new three-month highs as well. The full stochastic move above 50 is a very positive signal. Price accelerated above the 10-week moving average and made a higher low in December while the overall market made a lower low. That tells me the investors are showing more interest as the market selloff hit the indexes. I particularly like the break in the one-year momentum trend shown on the PPO.
Hydrogenics has not posted a profit recently with negative earnings. However, the chart shows the stock firing up with a 60% move off the lows of last month! The relative strength downtrend in purple is being tested. That can be a good clue that the trend is trying to change. Obviously, buying a stock up 60% isn’t recommended, so this stock looks like one we should watch until the stock has had time to retest. The down trend in momentum on the PPO has not broken yet, and usually momentum changes trend before price. This stock looks better on a watch list but this looks promising.
Innergex Renewable Energy (INE.TO) is listed on the Canadian Exchange. The stock price is pushing to be at new 52-week highs. Notice how the relative strength in purple has broken through a two-year downtrend. The recent high in relative strength is also a new 52-week high. The momentum trend is also trying to breakout this week. This setup looks very positive.
Lastly the Solar energy ETF (TAN) is timely on a long-term chart. We are getting to the thin edge of the wedge. If we see a breakout in solar stocks, this would be a major trend change.
These stocks are ready for our focus. One of the best parts is these stocks move dramatically both ways. Watch closely for what could be a major ride. That is very exciting if this is the next leg of the renewables bull market!