Bright Days Ahead for Solar ETF TAN

Guggenheim Solar ETF (NYSE: TAN) — This exchange-traded fund (ETF) seeks to replicate the performance of the MAC Solar Energy Index.

I’m always interested in ETFs that run against the trend, and TAN is one of them. With the pressure on the energy industry to come up with better power sources, new money is flowing into the sector and this ETF should benefit. For the next 12 months, the sun appears to be breaking through on this industry, and by investing in ETFs with a global perspective, the investor has the additional benefit of diversification into the emerging markets

Technically, the ETF has broken above its 200-day moving average at $7.80 and run to over $9. A pullback to its 50-day moving average at $8 is likely, and so that is our buy point. 

Finally, it is rumored that China is considering price supports for solar, and if that materializes this year, then TAN could break into full sunlight.

Trade of the Day - TAN Chart

Trade of the Day Chart Key

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