Solar Stocks Holding

Published on Tuesday, 08 December 2009 13:28 Written by Gerard Lerod

New York, Dec 8^th (TradersHuddle.com) – Shares of practically all solar stocks are trading in the red today, as investors book some profits from yesterday big move to the upside

Common sense dictates that with oil below $75, there is really no chance for the solar stocks to catch fire, however the divergence was created by the climate change talks that started yesterday in Copenhagen, which traders took as an excuse to push solar stocks higher. 

First Solar Inc (NASDAQ:FSLR)

First Solar has been very weak, since setting its peak last June above $200, it declined all the way to $118 back in August, just to rally back towards $160. This past rally failed around the 50% Fibonacci level, and First Solar saw a retest of the August lows back in November.

First Solar broke out last Friday by moving above $127, and yesterday pushing well above $130 closing around the $135 level.  Today the shares of First Solar are in the red, but just fractionally lower still holding yesterday’s gain. First Solar shares will face significant resistance just above $140.

LDK Solar Co (NYSE:LDK)

Shares of LDK continue to trade well above $9, which is almost 100% higher from its low last October. This is a very volatile Chinese company beat earnings estimates a few weeks ago, and since then has been breaking a long term downtrend line.

With LDK above its 200 day moving average, although it’s currently dealing with significant resistance at $9.30 it can break out and get momentum towards the upside, if the rally in the sector is for real and comes accompanied by volume.