Bearish Signals from the Bollinger Bands for 5 Renewable Energy Equipment Stocks
The renewable energy industry has performed incredibly well over the last 10 months. After bottoming at $21.11 in March, the Invesco Solar ETF (TAN) has rallied over 400%. As you can imagine, such a rally has caused the ETF and most of the stocks in the group to reach overbought levels on their weekly charts. In most cases they are also overbought on the daily and monthly charts as well.
I ran a scan on December 24 for stocks in overbought territory that also had their daily stochastic indicators make bearish crossovers. On that list were five different renewable energy equipment stocks and the Invesco Solar ETF. The five stocks were:
First Solar (FSLR)
JinkoSolar (JKS)
Sunnova Energy International (NOVA)
Plug Power (PLUG)
Sunpower (SPWR)
When I pulled up these five stocks on the Tickeron Technical Analysis Screener, I couldn’t help but notice all five stocks had received bearish signals from the Bollinger Bands indicator within the last three days. Two of the five, Sunnova and JinkoSolar, had bearish signals generated on December 28.
The Tickeron Scorecard has Plug Power ranked as a “sell” and First Solar is ranked as a “strong buy”. The other three have “buy” ratings. Despite the scorecard grades, there are some areas of concern on the fundamental side. All five stocks have poor SMR ratings and four of the five have poor P/E Growth Ratings. We also see that three of the five are overvalued at this time.
I looked at the analysts’ ratings and the short interest ratios for these five stocks in order to get a sense of the sentiment toward them. There is quite a bit of pessimism toward First Solar and Sunpower while the sentiment is neutral on JinkoSolar.
Sunnova Energy and Plug Power both have quite a bit of optimism directed at them right now. Both companies have 11 analysts following them with 10 of the 11 rating the stock as a “buy”. In both instances there is one “hold” rating on each stock. The short interest ratio for Sunnova is very low at 1.6 and Plug’s is below average at 2.49.
What all of this tells me is that if the bearish crossovers from the stochastic indicators and the bearish signals from the Bollinger Bands turn out to be accurate, it will be driven primarily from technical factors. The overbought levels could cause some investors to take profits.
To give you an idea of how the stocks compare to one another and to other stocks in general, I used the comparison feature on Tickeron to compare Plug, Sunnova, and First Solar. If you recall Plug was rated as a “sell”, Sunnova was rated as a “buy”, and First Solar is rated as a “strong buy”.
TAN sees MACD Histogram crosses below signal line
TAN saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on March 24, 2025. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 50 instances where the indicator turned negative. In of the 50 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on March 21, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on TAN as a result. In of 82 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
TAN moved below its 50-day moving average on February 27, 2025 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for TAN crossed bearishly below the 50-day moving average on March 04, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TAN declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where TAN's RSI Indicator exited the oversold zone, of 29 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 6 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TAN advanced for three days, in of 269 cases, the price rose further within the following month. The odds of a continued upward trend are .
TAN may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 210 cases where TAN Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
Category MiscellaneousSector