Solar Stocks Look Ready to Shine 🌤️ The Morning Print

Good morning! 

Solar stocks are testing a big level after four consecutive weeks of gains.

Here's the setup.

Solar stocks (TAN) are coming off a strong week, fueled by outsized moves in names like SEDG, ENPH, and emerging leadership from NXT.

A couple weeks ago, one of our Charts of the Day highlighted the broadening energy trade, with clean energy stocks being one of the beneficiaries.

Since reclaiming its key polarity level near $55, TAN has rallied sharply into the anchored VWAP from its 2021 cycle highs after four straight weeks of upside, tied for the most since the market bottomed in late 2022.

That anchored VWAP has capped every rally attempt over the past several years.

A decisive breakout above it would represent a meaningful change in character for the group.

With markets running hot and leadership becoming increasingly crowded, investors may begin searching for laggards with catch-up potential.

Solar stocks could be one area worth watching.