Stock Technical Analysis: SOLF at Key Resistance Level
Written by Sidney on September 22, 2009
Hello to all our fans! Here’s my response for a stock technical analysis of Solarfun Power Holdings (SOLF), an investment holding company that develops, manufactures, and sells photovoltaic (PV) cells and PV modules.
From the log chart below, SOLF is in a long-term downtrend since peaking at $40.19 in early January 2008. With the recent rally of the stock in September 2009, the stock is currently testing a key resistance line. A definitive break above this resistance on high volume signals a break of the trend. However, even if this resistance is broken, I will still be cautious about trading SOLF due to the presence of multiple short-term resistance lines.
Stock Technical Analysis of SOLF
Looking at a more short-term chart below, SOLF appears to be basing. One can see the short-term resistance band hovering between approximately $8 and $9.54. This resistance band may subsequently add to the headwind, and limit any potential rally of the stock.
Short-Term Chart of SOLF
To conclude, if you have already bought the stock, then hold on to SOLF unless it drops below its short-term support band. But do take note that from its closing price of $6.80 today, this represents an over 30% decline. You may want to set a higher stop loss depending on your holding power. I currently do not recommend buying the stock until it breaks definitively above $10.
This is a hard nut. Good luck!
Is this analysis useful? We want to hear from you - please leave your comments below! :)
Related posts:
Submit Reply
Here’s my take on KPPC: KPPC has had a decent rally from its Feb 2009 lows, but... (Nov 22, 09)