EV Weekly Newsletter
After last weeks market had a lot of chop, the incoming administration has policies geared specifically to the move to Electric. Over the last week, most of those charts turned lower. The few that were flagged as being nice setups, did pop, but also a few have already reversed. With no real follow through on those names, and a lot of the charts breaking lower, the list of nice setups this week is really only one name and it is defensive. There are only 12 charts on the scanner that look like nice setups, but even those have not started to turn up. They are consolidating sideways and worth watching. The second chart shown below is an explanation of why we want to be cautious on setups here as the chart keeps trying to push higher but closes lower. As it consolidated though, we can watch to see if price firms up.
Conventional Electricity; 14 week consolidation
Exelon is a utility with a 3.5% dividend. Price action this week is lined up to break out of a 14-week consolidation. The stock is still below the highs of 2020, but is working its way into the top corner of the chart.
Luminar Technologies (Nasdaq:LAZR)
Watch list candidate – but weak price action so far
Luminar moved 400% in November on this chart of daily price bars. Let’s call that a heady move! It has retraced roughly half of the big move up. Most of the volume on the stock is at higher prices (long horizontal volume by price bars) so we have a lot of investors trapped with losing positions. $28 is an interesting location on the stock. It found support there in early January. In the past week the stock tried to rally higher, but continues to make lower closes. I am looking for the stock to stabilize here at the triangle lows, and until that holds, I don’t want to own the stock. It will need to develop some upside momentum first. With a significant amount of weakness in the charts this week, this needs to solidify above $28 and start to turn up gently.
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 signaling signs of upward momentum)
Remember that you can click on these small charts to see the big ones. One of the issues I have with the charts this week, is they are holding, but not really showing signs of turning up. The list is extremely short, so be careful. When everything quits working, the market is trying to tell us something.
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Greg Schnell, CMT