I’m going to make this brief…
Take a look at two charts from the top two prospects (in my own opinion)in solar right now…FSLR and WFR.
Both of these stocks are coming into a major inflection point on the graphs above. They’ve spent the last few years carving out bottoms, and are now coming into major volume pockets on their respective charts.
Notice how these stocks both spent multiple years (09, 10, 11) trading in ranges while the rest of the market flourished, then were later massacred in 2011, losing up to 90% of their values. These fast sharp sell-offs moved quickly down the price chart, leaving very thin traces of volume along the way.
Volume pockets are similar to the concept of price gaps, but are much smarter and more useful.
Prices have memory, and when prices enter a “pocket” they travel through this area of little price memory to the next price remembered. In the case of these solar stocks, we’re talking $100 in FSLR and $10 in WFR.