A look at Guggenheim Solar ETF — Is the Sun Setting on Solar?
Guggenheim Solar ETF ($TAN) averages are at $41.41 (21 day SMA), $39.38 (50 day SMA), $32.57 (200 day SMA). Over the past 52 weeks TAN has traded from a low of $15.00 to a high of $47.50. TAN was last at $49.93 on a volume of 87,069. Average daily volume has been at 550,037.
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The question in the title was provocative — because the technical picture on the Guggenheim Solar ETF (TAN) is bullish and showing no technical signs of deterioration of the uptrend. The stock has recently broken out of a trading channel and technical traders might want to watch how deeply any pullback falls into that channel. Strong stocks don’t retrace all of the channel that’s been broken. Also, a look at the weekly chart shows that TAN is moving out of a somewhat loose volatility squeeze.
So the sector appears to have some pretty strong upward momentum. So long as the trend remains intact, this sector is hot.
The investment seeks investment results that correspond generally to the performance, before the fund’s fees and expenses, of an equity index called the MAC Global Solar Energy Index.
The fund will invest at least 90% of total assets in common stock, ADRs and GDRs that comprise the index and depositary receipts representing common stocks included in the index. The Solar Index was comprised of approximately 26 securities selected based on the relative importance of solar power within the company’s business model. It generally will invest in all of the securities comprising the index in proportion to their weightings in the index. The fund is non-diversified.