Keep an eye on this lesser known solar stock: $SHLS $TAN – August 4, 2022


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This is Scott with your Chart of the Day. I want to keep an eye on a solar stock that is kind of lesser-known ( NASDAQ: SHLS ). When you think of solar stocks you probably think of SolarEdge ( NASDAQ: SEDG ). You probably think of First Solar ( NASDAQ: FSLR ). You probably think of Endphase ( NASDAQ: ENPH ), these are the solar stocks that come to mind.

But I think Shoals ( NASDAQ: SHLS ) is definitely one that you should keep an eye on as well. Because from what I understand, everyone who is in the solar sector, every company, uses parts from this company. So as long as those companies are getting orders, this company is getting orders.

That is just kind of a brief overview, I won’t go too deep into it, but it is looking pretty good here. As you can see on the chart it is above all the major moving averages and in an uptrend. You can see how it consolidated around these clusters of moving averages for a while. It popped up above, did it on good volume, and so far has been consolidating this move just going sideways around that daily 8-exponential period moving average.

This is a nice kind of consultative base that you want to see after a stock makes a big move like this. I think is definitely worth watching. You could probably even take a small position with a stop either around that 21.18 level or even down here at around 21-20, you know, based on your risk tolerance. And as long as it is able to hold above that 8-exponential period moving average I think you are okay.

On the weekly chart here, you can see it’s above the weekly 50-period simple moving average and coming close to a previous weekly high here. So it looks good on the weekly, it looks good on the daily, and it is definitely one that I think you should keep on a watch list because not a lot of people know it and it is in a pretty strong sector right now.

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