Anyone enlightened enough to realize that ‘flat-earthers’ have always been wrong has also noticed the nuclear reactor 93 million miles away from our home planet. The concept of harnessing this awesome energy source in the form of solar panels usually comes quickly into fashion when oil prices rise here on “the pale blue dot”. Solar power has a way of looking increasingly sexy as oil begins to drain disposable income. We’re not there yet. But it can happen again, as it’s happened before.
XLE is up 1.8% on the day
USO is flat on the day
FSLR is up 2.07% on the day
On the XLE daily chart price is range-bound, testing upper resistance in today’s session before backing off. This range contraction could lead to an explosive move. If the break is to the upside there is plenty of room to run. A first target would be $78 and change, then $83-ish, followed by all-time-highs above $101. A move could be dynamic and faster than expected.
USO was flat on the day, but continues to set up for a possible breakout on the daily chart.
With these possible breakouts on the horizon, I’m looking closely at FSLR, which should move in sympathy with USO and XLE. The weekly chart below shows it moving towards its own key resistance level, and an upward break leaves it plenty of room to move dramatically higher. Long term resistance is above $105. That’s roughly 48% upside potential from current levels. I will be watching for strength on a break above $77, and I find it more appealing to participate in solar than a direct oil play. Weekly chart below: