Solar stocks have been under pressure for most of 2024, but recent political developments have triggered a notable shift. With the upcoming U.S. elections and renewed optimism surrounding renewable energy, particularly under a potential Kamala Harris administration, solar stocks have jumped back onto investors’ radars. While the broader sector has struggled, down over 25% year-to-date compared to the S&P 500’s +14%, some individual names are showing strong technical setups. Let’s dive into two key solar companies that could offer compelling opportunities based on their recent chart action.
First Solar Inc. (NASDAQ: FSLR) Consolidation Phase, but Potential Breakout Ahead
First Solar has had a turbulent year, starting with an impressive outperformance against the S&P 500 and reaching a high just above $300 back in June. However, the stock has since cooled off, dropping to find new support around the $210 mark. Since then, FSLR has been trading within a range between $200 and $240, which interestingly aligns with previous resistance levels from 2023.
This consolidation phase suggests that a potential move could be on the horizon. Typically, when a stock is trapped in a well-defined range like this, it’s best to wait for a confirmed break above resistance before considering a buy. For FSLR, a breakout above $240 would indicate the start of an upside rotation, potentially setting the stage for a retest of its 2024 high around $300. Keep a close watch on that $240 level—breaking through it could signal a significant bullish shift for First Solar.
Sunrun Inc. (NASDAQ: RUN) In an Uptrend, with Ideal Entry Point Emerging
While First Solar remains in a consolidation phase, Sunrun offers a more attractive technical setup at this moment. RUN is in a confirmed uptrend, with a pattern of higher highs and higher lows firmly established. The stock found key support around $9 in late 2023, retested that level earlier this year, and has been on a steady climb since.
What makes RUN particularly interesting right now is its pullback to the 50-day moving average this week, which has served as a reliable support level during its uptrend. Stocks in an uptrend often offer solid entry points during pullbacks like this, as they set the stage for the next leg higher.
That said, investors should note that Sunrun faces some overhead resistance in the $20-24 range. Historically, the stock has struggled to push past this level, so it’s worth keeping that in mind as a short-term target. However, if Sunrun can break through the $24 mark, it would suggest clear skies ahead from a technical perspective, opening the door for significant further gains.
As the election season heats up and solar stocks get renewed attention, these two names are worth watching closely. Both First Solar and Sunrun offer unique opportunities, but the technical setups highlight different strategies for entry—whether waiting for a breakout or taking advantage of an uptrend pullback.
Enphase Energy Inc. (NASDAQ: ENPH) Technical Weakness, but Long-Term Potential Remains Strong
Enphase Energy has had a challenging year in 2024, with its stock down significantly from the highs it reached during the solar boom of 2020-2022. ENPH has struggled with declining demand in the U.S. residential market, causing its stock to fall over 50% year-to-date. While this may seem like a negative, it presents a unique opportunity for long-term investors. The company remains a dominant player in the solar technology space, and its international expansion into markets like Europe and India could help drive future growth.
Technically, ENPH is in a clear downtrend, currently trading below its 200-day moving average. However, it’s worth noting that the stock has recently found support around $110, a key level that has held multiple times since 2021. For investors with a longer-term outlook, this could represent a buying opportunity as the stock looks oversold. If Enphase can regain momentum and break back above its 50-day moving average, it could signal the start of a recovery.
While the stock may not offer immediate upside like Sunrun’s uptrend or First Solar’s potential breakout, Enphase’s strong market position and growing international presence make it a compelling addition to a long-term solar portfolio.
