Clean Tech Newsletter July 22, 2021

 

Clean Tech Newsletter

Lots of charts are breaking out, then pulling back right away. Still a choppy environment as the charts are generally weak. No signs of improvement in the Clean Tech area specifically. The charts below show many stocks with potential setups but very few of the typical setups have followed through over the last few weeks. The lithium names broke out recently, and some of the rare earth names have been moving. Some of the charts highlighted below are related to industrial metals more broadly.

Alcoa (NYSE:AA)

Aluminum is used for the major power lines.

When yields were rising (inflation), the commodity companies did quite well. I wrote an article on yields on Tuesday. The Valley Of Fear. If yields are starting the next leg higher, this would be a great place to be looking at the commodity companies. Alcoa is poised to break the downtrend.

Link to Chart

Freeport McMoRan  (NYSE:FCX)

The stock is threatening to break the downtrend. (again).

Freeport has declined 30% off the highs and is bouncing off Monday’s low. I particularly like the break of the PPO downtrend as a starting point for a trend line break. Miraculously, Mercedes announced their entire car line would be electric by 2030. If auto companies accelerate their move to electric faster than the infrastructure is being built, that should scare the price of copper higher. I don’t know what will if drastic raw material shortages show up. We currently have lineups of Tesla’s waiting for hours at charging stations while the grids behind them are out of power. We need governments with a plan to quickly approve copper mines. So far, they huddle in the virtue signalling rooms, not the halls of mine approvals. Eventually this pops.

Link to Chart

BHP  ( Nasdaq:BHP)

Testing resistance once again.

BHP announced they were going to be supplying Tesla non-China sourced nickel with some of the best environmental protections in the mining business. BHP and Tesla. BHP suggests the nickel consumption will rise 500% over the next decade. That might be faster than software companies are growing!

Link to Chart

Albemarle (NYSE: ALB)

After breaking out in early June, the stock retraced to the uptrend.

I mentioned this stock a few weeks ago, but it continues to be interesting here. Here was the setup: The chart is encountering some resistance at the volume by price bar. This s a big provider of lithium needed for battery manufacturers. After a 3-month consolidation, the stock looks set to get on its way.  The stock has the potential to be building a topping pattern, but in my mind, I can’t figure out how a lithium company can be topping on the eve of the biggest ramp into battery storage. I view it as a consolidation range and I want to be ready to buy a breakout.

Link to Chart

An update on the Albemarle Chart.

TransAlta Renewables (TSX:RNW.TO)

This renewable energy utility looks ready to to break out from a bull flag on the weekly.

TransAlta is poised to breakout to new all-time highs here. The PPO momentum is turning up while the stock consolidated for three weeks. The quiet volume doesn’t concern me as I have mentioned these alternative energy power companies before and they all look good.

Link to Chart

 Brookfield Renewable Partners (NYSE: BEP)

After making a higher low, the stock looks set to break the downtrend.

From two weeks ago: These renewable energy names appear to be setting up for a breakout to the upside. The chart is constructive. A break above the downtrend line looks like an excellent entry although there may be some resistance provided by the large volume by price level just above. Still a very nice bullish setup.

Link to Chart

An update on the Brookfield Renewables chart above. Poised again.

 

 Cameco (NYSE:CCJ, TSX:CCO.TO)

Trying to buy near the bottom in this choppy name.

Cameco has that magical ability to stop me out on every entry. It is just one of those names that doesn’t handle breakout trading well. Examples are the breakouts of March 2, May 10th and May 27th.  Breaks out, choppy action, pulls back. The late May one only gave one day of pain but the rally lost steam shortly after. Now Cameco has pulled back 25% and rests close to the largest volume by price bar. The full stochastic is starting to turn up but the price bounced 10% in three days.  If it consolidates here, I like the entry on the break of the downtrend.

Link to Chart

Fusion Fuel  (Nasdaq:HTOO)

Momentum is turning up once again near the highs.

Fusion Fuel has held up really well in the clean tech space. The stock is very close to all time highs. Price chopped around for a month at this level before falling in early July. It might need a little extra time to get through this resistance layer.

Link to Chart

Keep looking at older posts. Some of those stocks are still in a range, but the setups can reestablish themselves.

EV Watchlist Scan Results

(stocks within the watchlist that are signalling signs of upward momentum)

Remember that you can click on these small charts to see the big ones.

Clean Tech Setups - July 21, 2021 Page 1
Clean Tech Setups - July 21, 2021 Page 2

Good trading,
Greg Schnell, CMT

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