Market Overview [34] - A rush into renewables
Dear investors,
Welcome back to the Market Overview, where we provide technical and sentimental analysis about financial markets. On top of that, we deliver crucial market information that can influence financial markets to be always a step ahead of major market movements.
With the second phase of Russia’s invasion in Ukraine, countries all over the world are (still) changing their strategies around energy resources to limit themselves to buy Russia’s energy supplies, what would fund the war on Ukraine even further.
One of those strategies are rapid investments into renewables, renewables includes sources such as sunlight, wind, rain, tides, waves, and geothermal heat. However, in today’s newsletter we will only focus on the source sunlight with two great solar companies.
SolarEdge Technologies - 1 Day Chart
Based in Herzliya Pituach, Israel, SolarEdge Technologies, incorporated in 2006, is a leading provider of an optimized inverter solution, which consists of inverters, power optimizers, a communication device that enables access to a cloud-based monitoring platform and in many cases, additional smart energy management solutions. Apart from these, the company’s core solar product portfolio includes energy storage solution. SolarEdge also offers a variety of professional software tools from system design to monitoring.
SolarEdge is a great company with long-term potential, however when would be the best time to invest?
In the chart above we have indicated strong trend lines and support/resistance zones. The recent development in the stock’s price action was a rising wedge pattern, what is considered to be a bearish development. When it broke its support the stock sold off approximately 20%.
We believe in the mid-term that the stock will decline further towards our green buy zone, this is where we would buy and hold our investment for the coming years.
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