Solar ETF on the Cusp of a Major Breakout

It is still early in 2014, but the Guggenheim Solar ETF (NYSEArca: TAN) is up to its old tricks and that is good thing for those holding the ETF.

“Old tricks” being that TAN was 2013’s top-performing energy sector ETF AND the best non-leveraged ETF of any type. Not even halfway through January, TAN is already 2014’s best non-leveraged ETF. TAN’s almost 13% jump to start the year has the fund facing technical resistance and on the cusp of a potentially epic breakout. [Sun Shines for 2013’s Best Energy ETF]

“After an incredible run in 2013 investors are hoping the sun will continue to shine for this sector that has been an investor favorite for the high beta momentum players,” said Al Sabogal, former head trader for Perry Capital, in an email exchange with ETF Trends.

Sabogal provided ETF Trends with a chart of TAN that shows clearly defined trend channel some professional traders have been using to trade the ETF and its constituents.

“While it has done nothing to violate the overall channel so far it is showing some signs of either being in the midst of digesting its incredible 2013 run or having trouble breaking above its October highs,” add Sabogal.