Solar ETF Moving Towards Oversold Buying Level
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 8 on a 3% pullback the next day and selling five days later has been profitable 71% of the time. The average winner has gained 3.1%. Other entries and exits also show high winning percentages and large average gains.
Guggenheim Solar (NYSE: TAN) has gained more than 150% since the beginning of the year. This ETF actually has a long history of volatility. Data available at TradingMarkets Live Screener, a service available from TradingMarkets.com, shows TAN has actually gained as much as 644% in a one-year period. Since TAN began trading in 2008, 62.4% of all rolling one-year time periods have shown gains. Volatility has been just as great on the downside with the largest one-year loss equal to 73.1%.
Over one-week periods, TAN has also delivered greater than average volatility. In a typical one-week period, the ETF has gained 2.73%, more than 22 times the average one-week gain of SPDR S&P 500 (NYSE: SPY) which has been 0.12%.
In the short-term, TAN has become oversold with a PowerRatings of 8 and the ETF could be a buy under $38.58.
All data is as of the end of day on 11/18/2013.