Don't Ignore This Chart!

Renewable Energy Stock Fills Breakaway Gap

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It's nice to see a heavy volume gap higher to break a downtrend.  It can be a very strong signal that sentiment has changed on a particular stock or industry group.  While renewable energy stocks ($DWCREE) remain technically-challenged, one of its components - Sunrun (RUN) - has certainly begun to show improving technical signs that could be considered by aggressive traders.  Take a look at the chart:

The bottom of gap support close to 5.40 has been filled and RUN is beginning to turn higher again.  Ultimately, a breakout above 6.50 on a closing basis would indicate a much healthier stock with rising highs and lows.

Happy trading!

Tom

Tom Bowley
About the author: is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
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