TAN Core Long Set Up

I haven't paid much attention to solar after all the scandals like Solyndra and others, but a member brought this to my attention and as a group, I don't mind solars, although there are some dangers to ETFs, if this is going to be trending as it appears, a lot of those dangers are greatly diminished and can from time to time, even be positives.

Here's the basic set up, we don't want to chase positions and especially not this one, but I have a feeling we are still in  stage 1 although volume looks like stage 2, I'll show you why I think it's still stage 1.

 I like to start with a 5-day chart to reduce the noise, obviously Tan started off at stage 4 decline and worked toward a stage 1 base, the $100 level is not only where resistance is, it's also where a deep rounding base would be and it's a clear psychological level as a centennial and whole number.

 a 2-day chart of Money Stream shows distribution right where you'd expect it, in a range, a large range, but still a range. On the right side of the rounding bottom we have increased activity as we should.

 I had some trouble deciding what length X-Over Screen fit the character of TAN best, I went with a weekly chart as it caught the downtrend and some false signals. The first pullback is almost always to the yellow 10-bar average (in this case a 50-day moving average) and the second is usually to the blue 22 bar average, that's where I think TAN is heading next and that's where I'd set my alerts for a possible long entry.

I also threw this in the Trend Channel, depending on how tight you want your stop a 3, 4 or 5 day channel can be used, the 3 day is currently at #30.86, the 4-day at $29.93 and the 5-day at $29, the above is a 4-day, but for a stock that is still in a very volatile stage 1 base, I'd go with the widest stop , the 5-day, once there's a breakout to stage 2 mark up, the stop can be tightened to a 3 or 4 day. Remember though, the Trend Channel is locking in gains every day so by the time this pulls back, all of those stops will be much tighter making the risk much lower.

 I don't think I need to notate the daily 3C chart which is powerful, it's clear where accumulation began.

As far as a pullback, we are just entering the probability now with a 5 min negative leading divergence and trade having flattened out, I suspect it will get worse before a pullback, but that's where we are now.

I'd set alerts at several of the levels mentioned above because I think this is a great long hedge to mostly core short positions, give it some time, let this position come to you. I think you'll be happy you did and then we can all by George a bottle of Evian or maybe something with bubbles in it.