SunPower Daily
SunPower Hourly
As a followup on my post on Solar stocks and due to a question from Todd. I have zoomed in on SunPower to see what we can expect next.
As can be seen on the daily chart we have a nice five wave rally from 3.71 to yesterday close at 15.47. We should expect a top now for a correction back to the bottom of wave 4 of one lessor degree, which would call for a correction back to the 9.00 - 9.35.
Looking at some Fibonacci relationships wave 5 is just over 61.8% of the distance traveled from the bottom of wave 1 to the top of wave 3 at 15.37. So if you are long this stock it time to book your profit or at least tighten your stop.
If we take a look at the hourly chart we Again can see a perfect five wave rally from 9.00 and looking at the Fibonacci relationships we can see the exact same relationship as we have on the daily chart. Wave v is now almost exactly 61.8% of the distance traveled from the bottom of wave i to the top of wave iii at 15.35.
Could we see wave 5 move towards the relationship of 100% of the distance traveled from the bottom of wave 1 to the top of wave 3? Yes it's possible but it's rare. However if it will be the case we should see a continuation higher towards 19.04, but that would be the absolute limit for this rally and I personally would not put my money on that outcome.
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