Tuesday, February 1, 2011

SOL

Take a look at this Solar Stock. (SOL)

 Nice base there with rounding volume, the 50-day average obviously means something to those trading this one as it gapped right through it and we have a nice little consolidation with volume looking the way it should.

 My crossover screen with my custom indicator in the middle to help prevent whipsaws is giving a long signal.

While there are numerous stops you can choose, especially depending on what kind of entry you may choose, the trend channel has held the up and down trends very well. Right now it's a bit too close to the even number of $10 so I'd adjust away from that or you may just want to consider the trend channel if it breaks out and moves on a leg up for a trailing stop.

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