SunPower (SPWR)

Jan 5, 2022Trade Ideas

Solar stocks like SunPower (SPWR) have been slow motion train wrecks.

However, according to analysts at Raymond James, it may be time to buy SPWR.

In fact, according to Barron’s, “Analyst Pavel Molchanov is predicting secular growth in electricity market penetration in many countries as demand for solar power evolves and hardware becomes cheaper over time.”

With a new price target of $26, the analyst says the negative reaction to news of a metering proposal in California was an overreaction. In addition, the stock is technically oversold at support dating back to May 2021, and is over-extended on RSI, MACD, and Williams’ %R. From a current price of $21.06, we’d like to see SPWR challenge prior resistance around $35.

The last two times SPWR became this technically oversold, it bounced from about $21 in May to $30 by June. In August, it ran from $21 to about $35 by November. It could be setting up to bounce again, near-term. Weakness may be opportunity here.

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