Tuesday, June 03, 2008

Trade Setup: SOLF

I bought 300 shares of SOLF at an average price of $21.48.

Setup: Breakout Pullback. The stock has pulled back to the 20 day moving average after a strong breakout. Stochastics recently reached oversold levels and has turned up. The volume pattern is consistent with the breakout-pullback setup, with volume contracting post breakout. Moving average traders will also note that the 50 day has crossed above the 200 day moving average.

Risk: My intial target is the recent high in the $26-28 range. I would likely take partial profits, move my stop up to my buy price, and hold the rest into new highs. My stop is just under support.

Concerns: The overall market stinks right now.

2 comments:

zeus111 said...

I would add the weakness in crude oil to my conerns. Solars have a high degree of corelation with crude.

The pattern is valid. Good luck with it.

marka said...

Don't think Solar has as much corelation to crude as you think or else all Solar stocks would be way above $100/ share. This oil price is nuts and I don't think reflected at all in the price of Solar stocks. Solar stocks are showing great earnings and should actually be trading much higher on that merit alone. Together with oil prices, they should be soaring.