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Fan Yang

Guggenheim Solar ETF (TAN) Rounding Out a Price Top

Guggenheim Solar ETF (TAN) had a good bullish run in 2017. We have been stalking this fund and anticipating upside towards 25. However, price has found resistance earlier around 22.30, which was a previous resistance as well. You can see this on the daily chart below:

TAN Daily Chart

(click to enlarge)

Consolidation:
- We should note that price action in late 2016 throughout 2017 so far has been in consolidation/correction mode. 
- Before 2017, price has been bearish. 
- It has been a significant consolidation, and the bullish pusnh since May could actually be the start of an uptrend. But we should still consider the possibility that it was simply a bullish correction to be faded.
Price Top:
- We can see that 22.30 was resistance in mid-2016 as well. Price action has formed something like a rounded top under 22.30.
- This price top has a neckline around 21. A break below 21 opens up 19-19.40, a critical support/resistance pivot area. 
- If TAN breaks below 19, then, then we might see it push towards the 2016/2017 lows around 16.50. 
- And if TAN is turning bullish, it might not retreat to 19. 20 for example could be a good spot for buyers, especially with the RSI around 40. 

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