For those considering a near-term trade in TAN, Psarofagis advises evaluating the ETF’s short interest.
“One important characteristic is the latest short interest number in TAN. As of February 13th, nearly 3.7M shares of TAN were held short, which translates to an extremely high short interest ratio of 19.1. If prices in TAN can break through that significant resistance line, a short squeeze could be in order, boosting prices higher. $40 is an important inflection point here and shouldn’t be ignored by investors,” he said.
Guggenheim Solar ETF
Chart Courtesy: Tom Psarofagis, Agd Capital Management