Morpheus Trading: Solar ETF (NYSEARCA:TAN) has finally made it back to our buy watchlist, after pulling back to and finding support at the rising 40-week MA this week. The current base in $TAN is the first touch of the 40wma since the strong uptrend began in 2013, which offers a low-risk entry to participate in what should be at least one more significant wave up in solar stocks.
The daily chart shows the higher low in place in early June, with the current pullback attempting to hold a strong support level at $40, where the rising 50 and 200-day MAs and prior swing low converge.
The price action may need to consolidate further before moving out, but with the 50ma near the 200ma, $TAN has the look of a low risk buy setup with a stop below the 200ma.
On the stock side, we have one new buy setup to add to an existing position in Tata Motors ($TTM) with a fairly tight stop below the 20-day EMA. $TTM has support from the rising 10 and 20-day MAs, along with the prior breakout pivot at $40.