Solar Energy ETF outperforms
Till the end of May, TAN – the Invesco Solar ETF – couldn’t break up the resistance line at about 26.
The price lows, on the other hand, formed an ascending support line – the blue line – which means that the bulls would take over whenever price fell below a certain level.
Starting from the end of May, though, price moved higher, as we can see in the orange box. In fact, since then, price moves in a strong uptrend between its 10-day exponential moving average and the upper Bollinger Band.
Of course, TAN’s 20- and 50-day exponential moving average are also moving up and diverging from each other, which means that momentum is building up in strength.
As soon as this momentum buildup started, MACD moved above its signal line.
Finally, TAN’s Relative Strength has been moving up and mostly above its 20-day exponential moving average since early April.