Breakout Ahead For The Guggenheim Solar ETF (TAN)?

sellbuyMorpheus 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.

$TAN support of 200ma

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.

$TAN support of 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.

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