This Stock Isn’t Selling Off

The energy sector as measured by oil and gas companies is having a terrible year.

However, the solar sector is on fire. The ETF that tracks solar companies is trading well above its 2018 high while the general market has struggled to break it.

Today’s trade is a low-priced stock that is poised to jump 50-100%.

Read below for the details

As you can see from the weekly chart below, SunPower (SPWR) just broke over a 2.5-year base and its 200-week moving average.

https://lh6.googleusercontent.com/GHeQpR6eORu-mlBXOHvu_ippXyUvF3FEELfACWluHesG7_iiZJtx_lmxd8GUDD0dznrm-FS0qWvjp8jqGFP-uhldznBjFu-Kh7wSAFSHnWdPK1BN6Vi9JTHA62l7pDpJY3RJM89S

The breakout level was about $12 and that exactly where its recent bull flag stopped.

Therefore, you’ve got a great stop under $12.

To be prudent, I would not buy over $14. The buy zone is $13-$14.

If it’s trading under $13, it will look weak, and I’d wait for it to recover.

I broke down from $20 in 2016 so that looks like a good initial target, however, the sector has the potential to have a multi-year bull run. If that happens, a $30 target doesn’t seem unreasonable.

Trade smart,

Rick Nartarian, Chief Investment Officer
Darwin Wealth Creation