I had another dream over the weekend.
This dream wasn’t the same as the ones I have had about sugar in 2019 or gold in 2020 or the Swiss Franc in 2024.
Those were literally out of the blue, based on some who-knows-from-where voice in my head that wakes me up.
This dream was more of a real dream, which I believe was based on assimilation of the news, charts and our own actual position in the solar energy ETF TAN.
The News
1. One big headline was from last week when the Supreme Court upheld two environmental regulations put in place by the Biden administration.
2. Oil prices-with weather and geopolitics at play, whenever oil gets pricier the conversation turns over to alternative energy.
The Charts
I have 2 for you today. The Daily chart above and the weekly chart below. Let’s examine.
Note that the channel lines connect a double bottom from August and September.
The top of the channel corresponds beautifully with the 200-daily moving average.
The July calendar range sits right above the MA. TAN is currently above the 50-DMA.
And the best part: TAN outperforms the S&P 500 ETF (SPY).
Real Motion is in a bullish divergence.
If we move out the timeframe to weekly, the channel is equally interesting.
We can see the double bottom.
And, we can see that the top aligns with the 50-week moving average.
The Leadership is not as clear-TAN and SPY are neck in neck.
Real Motion shows momentum and price are also well aligned.
In both the Daily and Weekly charts, 43.55 looks like the logical price to clear.
Twitter: @marketminute
The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not represent the views or opinions of any other person or entity.
