Looks like we have a VERY nice set up getting ready to run:
TAN – Invesco SOLAR ETF. There are multiple Solar plays out there. I’m lazy, so I went to the ETF that covers the ecosystem.
We have a lot of positive indications that this one is worth the risk. This investment will be – more than likely – 3 years+ and I’ve been following it ever since David Keller, CMT (who I think is one of THE best out there) started talking about it years ago. Come to think about it, it might have been in the 2010-2015 area.
Anyway, here’s the way I see it –
*EWT is showing us STILL in wave 3 and that means we have some ways to go higher … I “like” the count and it doesn’t break any rules BUT please remember my golf game and EWT – we have some parenthesis present so I could very easily be subconsciously “forcing” myself into this count. Oh well, but you know me – full disclosure here.
*Volume is showing and interesting “breakout” – what I mean is volume steadily declined as the price declined greater than 60%. Once we “bottomed” notice how volume “broke out” and broke thru the resistance and is getting bigger as we are bottoming?
*This is the biggest one for me – the illusory TIME component. In this case we have the SAME TIME COMPONENT PRESENT for the two ‘major’ corrections thru thus far.
* Take the above about TIME and note what the price is sitting on – exactly – the 786 from the all time low to the most recent high. Nice.
*In this long recommendation – the price will HAVE TO overcome the red resistance line – due to polarity. A conservative play would be to BUY only w/ a monthly or weekly close above the red line. There is still plenty of room to run.
The next chart shows the “count” and in a bullish scenario – this ETF is getting ready to RUN. A .68179 (musical note) projection (monthly), sitting on top of the .786 from all time low to most recent high, RSI support which is showing the classic “breakout” to new resistance high for a BULLISH trend and, most importantly on this chart is THE EXACT SAME PERCENTAGE PRICE CORRECTION as the last correction move.
There we have it – PRICE equals TIME w/ other, important, but lesser confirmations from traditional technical analysis tools.