Clean Tech Theme July 7, 2021


Clean Tech Newsletter

Lots of charts are breaking out, then pulling back right away. Still a choppy environment. The car manufacturer names broadly are rolling over.

Vedanta (NYSE:VEDL)

We are about to find out if the steel names can break out.

Last week I pointed out some of the steel companies trying to break higher. They keep stalling out but the setups are there. They are not breaking down yet. The chart below has large volume by price bars(Gray and red shaded bars) at two levels near the current price. Just below and just above. The buyers just below are happy, the owners just above are concerned by the recent lower low. On a down day for the overall market, the stock rallied 1.2%. The volume was excellent and the PPO is trying to cross to the upside. The direction of the US dollar is hard to figure out here. If the dollar stalls, all these material names look ready to accelerate higher.

Link to Chart

Alcoa  (NYSE:AA)

The stock is building a series of higher lows.

Alcoa sits on a volume by price bar after approaching the downtrend line. The stock may need to consolidate here before busting higher, as the downtrend is currently intact. A break of the down trend would probably occur as the PPO moves above zero. Positive momentum would be a good start after this 2-month downtrend which started as the US Dollar bottomed.

Link to Chart

Canadian Solar ( Nasdaq:CSIQ)

A bull flag showing up on another solar chart.

I mentioned solar names last week. This chart looks like a typical bull flag setup. The stock accelerated higher, but ran out of buyers. The stock pulled back and bounced off horizontal support after 4 days trending lower. A bullish break above the downtrend line would be a buy signal for me.

Link to Chart

Albemarle (NYSE: ALB)

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

I mentioned this stock last week, but it continues to be interesting here. 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

Boralex (TSX:BLX.TO)

This renewable energy utility looks ready to to break out.

Boralex had a fabulous run in 2020 but hit a 6-month swoon. The low of June 25th looks like a higher low to me. The PPO is also making a higher low and a move to the upside here will push the PPO indicator into positive territory after stalling around this zero line on the last two attempts.  The downtrend line was broken this week. The prior high of $40 is the current resistance and a break above that would be a series of higher highs and higher lows, the definition of an uptrend.

Link to Chart

 Brookfield Renewable Partners (NYSE: BEP)

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

Brookfield has a similar PPO to the PPO on Boralex above. 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

 NextEra Energy (NYSE:NEE)

Very close to a 3-month high breakout.

NextEra Energy is very close to breaking the downtrend that has been in place for six months. The chart shows a few pictures of indecision. We have the stock price working towards an apex, which usually resolves itself sooner than the last week before the apex of the triangle. Secondly, the stock is very close to moving above the large volume by price bars. Lastly, the PPO momentum indicator suggests a breakout to the upside here, which looks very bullish as it would also break the PPO down trend as the price breaks out. It looks well set up for higher prices.

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 7, 2021 Page 1
Clean Tech Setups - July 7, 2021 Page 2

Good trading,
Greg Schnell, CMT

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