Those short bets against the stocks held by KWT and TAN, the larger of the two solar ETFs, have already been rewarded. However, with oil showing few signs of life, TAN’s ability to find support just above $32 will come into focus…and be tested.
As the chart below, courtesy of J.C. Parets of All-Star Charts, indicates, if TAN is unable to find support in the low $32 area, downside for the ETF is to the $28.20 area, or more than 12% below where TAN closed Tuesday.
Guggenheim Solar ETF
Chart Courtesy: J.C. Parets, All-Star Charts