Clean Tech Newsletter July 29, 2021

 

Clean Tech Newsletter

For the last three weeks, the auto names haven’t been particularly impressive. The direct renewable energy stocks have also wobbled without much sustaining power. That might be starting to change. However, metals and mining companies have been setting up. Last week, I mentioned they had started to work and a few renewable energy names like BEP were setting up. All of the charts from last week followed through. This is the first time in a while that we are starting to see uptrends following breakouts in the clean tech space. This week, more mining names are setting up. Definitely look at some of the older posts as they continue to set up. What should have broken out a month or so ago, may be breaking out now.

The overall lists in the PDF charts attached are still short, but the numbers have improved over the last 2 weeks from abysmal levels.

Southern Copper (NYSE:SCCO)

Copper is moving back up.

Southern Copper is breaking out of a nice base with a large volume by price bar as support.  The PPO is heading into positive territory.

Link to Chart

ArcelorMittal (NYSE:MT)

The stock is breaking out to new highs.

Steel is one of the biggest commodities used in renewable energy. ArcelorMittal is breaking out to new highs this week after a one day stop at the former highs! The downtrend in momentum is breaking as the stock roars higher.

Link to Chart

GGB ( NYSE:GGB)

Testing resistance once again. It has broken the downtrend.

Gerdau is another steel manufacturer. The stock is breaking above the prior highs and has broken the 3-month downtrend line. The large volume by price bar suggests this is an important area for investors. Fits with the theme of metals names moving higher.

Link to Chart

Lithia Motors (NYSE: LAD)

After a big 2-day jump last week, the stock is bull flagging.

One of the few automobile charts trying to push higher. The stock is now making a series of higher highs and higher lows. The two-day pop last week jumped the stock above the $360 resistance level. A break above this 7-day consolidation would see the chart test prior highs.

Link to Chart

 

Greenlane Renewables (TSX:GRN.TO)

This renewable energy name went straight up. I’m waiting for a pullback.

Greenlane broke above $1.60 to make a new high. The stock could consolidate here which would be a better setup than an investor trying to buy on the rocket shot.

Link to Chart

 Hudbay Minerals (NYSE: HBM,TSX:HBM.TO)

A ballistic surge, I’ll wait for a small retracement.

Hudbay Minerals has been moving up every day for 8 days straight. While that can continue, it would be reasonable to look for a pullback. The stock broke above a prior high and if it could pullback a bit, the $7.10 area would be a nice location for support.

Link to Chart

 Cameco (NYSE:CCJ, TSX:CCO.TO)

Trying to buy near the bottom in this choppy name.

 

FROM LAST WEEK:
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

An update on Cameco

 

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 28, 2021 Page 1
Clean Tech Setups - July 28, 2021 Page 2

Good trading,
Greg Schnell, CMT

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