Monday, October 10, 2011

Suntech Power Holdings - STP

COMPLETE ARTICLE AND MORE GRAPHS

Solyndra has signaled the dark days ahead for the solar energy sectors and high flying Suntech Power Holdings (STP) is no exception.  The price is off 97.17% from its one time high and it's currently down 78.30% from its one year high.  The daily trading price on this graph provided by Barchart shows just how bad the daily trading data has been:



Barchart technical indicators:

  • 64% overall Barchart technical sell signal
  • Trend Spotter technical sell signal
  • Below its 20, 50 and 100 day moving averages
  • 78.30% off its one year high
  • Relative Strength Index is 33.32% but getting stronger
  • Barchart computes a technical support level at 1.98
  • Recently traded at 2.31 with a 50 day moving average of 4.57

Summary: Venturing into solar energy investments at this point is not investing its pure speculation.  The industry is too dependent on government tax credits and subsidies instead of venture capital R&D seed money at the present time.  Solar power is not price competitive with petroleum, hydro-electric, vegetable oils or even wind power and may not be for some time to come.  Only speculators should consider looking for a dead cat bounce from the solar energy sector.

Jim Van Meerten is a Marketocracy Master



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