The investment tax credit was originally set to expire on December 31, 2016. Consequently, investors had anticipated a precipitous decline in demand for solar energy, with installations falling in 2017 due to the expiration.
The recent credit extension also highlights the political risks associated with solar and renewable energy technologies.
“Since that Feb bottom, bounces have been failing just shy of the late Sept trough, at $25.25, and now TAN breaking to fresh 3-month lows,” reports Reuters. “Once the Feb bottom at $20.00 gives way, ETF can threaten its 2013/2012 lows in the $15.00/$12.59 area moving forward. Need weekly close above $25.25, and descending 30-WMA, now $25.50, to suggest a surprise turn in trend; suggest levels over $30.00 back in play.”
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Guggenheim Solar ETF