First Solar Might Be Next in Line

Given the recent news flow, China solar plays have, understandably, been the focus of attention for momentum traders within the TAN (sector ETF for solars). 

However, it is worth remembering that the domestic solar plays still may very well stand to benefit from the populist tone in Washington.

Beyond politics, the First Solar chart, below on the daily timeframe, has been marking time rather calmly over the last six weeks or so. Indeed, when it comes to just about all things commodity-related, orderly consolidations are practically a win in and of themselves for bulls, given how violently high beta these types of names can be when they are more indecisive. 

With this in mind, FSLR becomes intriguing on the long side as the China plays like JASO and JKS garner attention. A move up and over $48 should put bulls in charge for a fresh breakout as price continues to operate above rising major moving averages. 

Incidentally, some solars plays may very well have been waiting for crude to get off the mat before beginning a new leg up. And considering all of the fits and starts that USO has seen, they have, once again, more than held their own in terms of avoiding sharp selloffs when it appeared momentum dried up.