Jinkosolar has been on a big roller coaster loop for the last two years. In recent weeks, the stock has started to break out; this week, the move has been 9% in the first four days. The relative strength (shown in purple in the chart below) suggests the stock is starting to outperform the S&P 500 average as the ratio is rising. The new six-month highs in relative strength provide a visual clue that the stock is performing well. The full stochastic has moved above 80, which also suggests strong price action.
Price is flying up the right hand side like a wide receiver on Super Bowl weekend. There does not seem to be any pass interference here!
The volume is surging on higher prices, which is good as we expect institutional, large position buying to push up the price. In the lowest panel is momentum, which is definitely pointed up.
The whole solar arena is improving, but First Solar isn't leading this time. Catch my Friday, February 1st edition of Market Buzz on StockCharts TV for more names in the space. I had two shows this week for Market Buzz on StockCharts TV, where there have been some beautiful sector setups to talk about recently. This new show is dedicated to weekly timeframe investing. Please follow me on Twitter and subscribe to my blog for regular updates.
A lot of charts are making bullish turns this week. If you are looking for some positive areas of the market to investigate, I would strongly encourage you to view the Weekend Market Roundup video, which you can also find in the "Canadian Technician" articles. Follow this link to "The Canadian Technician" and don't forget to subscribe.
There are some Canadian charts that look outstanding! This is my Canadian Market Review.
If you would like to learn more about the basics of charting, check out Stock Charts for Dummies. The first section of the book walks through all the chart settings to get the charts you want, the second section explores why you might use charts for investing and the third section is about putting it all together.
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Greg Schnell, CMT, MFTA
Senior Technical Analyst, StockCharts.com
Author, Stock Charts for Dummies
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