Clean Energy Joins Solar ETF in Oversold Territory
PowerRatings are based on the relative strength or weakness of particular stocks or ETFs. The higher the rating, the greater the one week historical gain has been for stocks and ETFs with that rating. For best results, enter these trades with a limit order 3-7% below the previous day’s closing price. Higher % limit entries have historically shown a greater percentage of winning trades but higher % limit orders also reduce the chance of trade execution.
In the past, buying stocks with a rating of 9 on a 3% pullback the next day and selling five days later has been profitable 75% of the time. The average winner has gained 4.3%. Other entries and exits also show high winning percentages and large average gains.
PowerShares WilderHill Clean Energy (NYSE: PBW) is oversold with a ConnorsRSI of 9.36. PowerRatings confirms the ETF is oversold.
Alternative energy ETFs like Guggenheim Solar (NYSE: TAN) have delivered large gains since the beginning of the year. PBW is another example with a gain of more than 65% since January. There is some overlap between the two ETFs but PBW adds exposure to wind and other alternative energy sources in addition to investments in solar energy companies.
Many clean energy companies are profitable and could be attractive to long-term investors. For now, the sector is largely oversold.
In the short-term, PBW has become oversold with a PowerRatings of 9 and the ETF could be a buy under $6.18.
All data is as of the end of day on 11/19/2013.