Solar stocks are making big moves on news of the renewable-energy investment tax credit likely being extended. Here are four to watch.
SolarEdge Technologies broke above its trend line and moving averages on Tuesday, and on Wednesday it popped another $3.76, or 17%, to $25.75, on 3.9 million shares. That's big volume for this stock, and it closed right near resistance. The next target is around $29, and if it can continue its momentum, it could run up to the mid-$30's eventually.
SolarCity Corporation (SCTY)
SolarCity Corporation was a monster on Wednesday, up $13.64, or 34%, to $53.69, and traded nearly 18 million shares. That's the biggest volume on an up-day since I've been watching it. The stock tested its major declinng tops line going way back. However, because of the thrust being so strong from $24 to $54-55 in just about 5 weeks, I would expect some pullback/consolidation. But I think that's a set-up for more upside to $60 eventually.
SunEdison took out its declining tops line and 50-day moving average on Wednesday, rallying 1.26, or 25%, to 6.21 on a whopping 109 million shares. Watch for the stock to reach last month's plateau in the $7.75-8 range.
TerraForm Powerhas had a tremendous recovery, nearly doubling in just the last 2-3 weeks. On Wednesday it gained 81 cents to $13.20, closing near resistance at the declining tops line and declining 50-day moving average, as well as at lateral price resistance. It could get a continuation into the $14 area, but it looks extended and may want to pullback and consolidate before its next move.
See video chart analysis on these stocks.
This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.