Scott thinks it might be time for a little $TAN – March 29, 2022
TAN
This is Scott with your Chart of the Day. I want to take a look at TAN ( NYSEARCA: TAN ), this is the solar ETF. As you know, spring is here, at least I think spring is here. I live in Canada and it snowed today, so I don’t actually have any real concept of what spring is other than a warm winter.
Regardless, I do know what a good chart looks like and TAN ( NYSEARCA: TAN ) is getting interesting. As you can see, the last couple of weeks here TAN ( NYSEARCA: TAN ) has really just been going sideways along this daily 8 exponential period moving average. A little bit of a low base here as we are still under that 200-day moving average.
What I would look for in the short-term on TAN ( NYSEARCA: TAN ) is potentially a test of the underside of the 200-day moving average, that’s about 5 percent higher. Now, if I zoom out I also am starting to wonder if this is building a little bit of a cup formation, a little bit of, well, a lot bit of a pullback but it is starting to round out the bottom.
It may be interesting, if TAN ( NYSEARCA: TAN ) can get above the 200-day moving average and then get to a test of the recent high over here in the next couple of months or so, I think that could be a pretty good trade, about 30 percent higher. Now, let’s not get too much ahead of yourselves, I think the first step this chart needs to do is get above and stay above that 200-day moving average.
So keep an eye on TAN ( NYSEARCA: TAN ). Ideally, you want to try and pick some of this up around that 8-day exponential period moving average or maybe if it dips down close to that 21-day. You can see that every time it comes down here it gets bought up. And if it doesn’t get bought up and you buy it down here, well, then you know the trade is now working, you have got to get out of the way. But watch TAN ( NYSEARCA: TAN ) and keep an eye on that 78.00 level. I am looking for a nice strong move through 78.00 coming on higher than average volume.
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