Chart Advisor: Solar Turns Up the Heat – Solar stocks stand out with new highs amid a sea of red for U.S. stocks.

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By J.C. Parets & All Star Charts

Thursday, 17th November, 2022

1/ Solar Turns Up the Heat

2/ BABA Bounces Back

3/ Turkey’s Trend Reversal

4/ Gold Stocks are Ready to Shine

Investopedia is partnering with All Star Charts on this newsletter, which both sells its research to investors, and may trade or hold positions in securities mentioned herein. The contents of this newsletter are for informational and educational purposes only, however, and do not constitute investing advice.

1/ Solar Turns Up the Heat

As participation continues to expand to new sectors and industry groups within the U.S. equity market, it is important not to dismiss groups that have shown leadership over longer timeframes. Solar energy stocks have been consistently outperforming year-to-date.

2/ BABA Bounces Back

Stocks around the world continue to show life, as rotation and outperformance from international equities becomes more pronounced. 

Today, Chinese technology stocks are atop the global leaderboard again. Ecommerce giant Alibaba (BABA) is leading the rally as investors bid up the stock following a strong earnings report. Other Chinese ecommerce platforms, including JD.com (JD) and Pinduoduo (PDD), report tomorrow and next week, respectively.

Source: All Star Charts, with data provided by Optuma

When we look at the full price history of BABA, we can see the principle of polarity taking effect as buyers stepped in and defended the all-time lows from 2015 last month. This is a logical place for the stock to bottom.

This week, BABA is confirming a bullish momentum divergence in the weekly RSI-14 as price hooks higher, reclaiming a shelf of pivot lows from the first half of this year. As such, a major trend reversal could be underway. If BABA manages to find a floor, it could bode well for international equity indexes.

3/ Turkey’s Trend Reversal

We’re seeing resurgence from international stocks, as strength expands across the board.

4/ Gold Stocks are Ready to Shine

With the U.S. Dollar Index (DXY) finally rolling over, a growing list of stocks and commodities are catching a bid and trending higher.

Commodity-oriented stocks benefit most from a falling dollar.

Originally posted 17th November, 2022

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