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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