SunPower Corporation (SPWR) rations rose more than 8% over the past two days after the establishment sought an exemption from the newly implemented solar tariffs. At length Friday, SunPower asked the Trump administration to exempt a segment of its solar panel suggestions from new tariffs, arguing that the move would allow it to set aside proposed investment cuts and ease plans to expand U.S. panel concocting efforts.
The controversial 30% solar tariff was implemented in January of this year. While the President hoped to into the bargain U.S. manufacturing, industry experts warned that the move would growth costs and lead to layoffs in the larger installation side of the industry. If SunPower is flush, many other solar companies could make similar disputes for exemptions from the new solar import tariffs, which could equalizer some of the tariff impacts. (See also: First Solar and SunPower: Purposes of Solar Panel Tariffs.)
From a technical standpoint, the stock rebounded firmly from lower trendline support to its upper trendline and 50-day telling average at $7.67. The relative strength index (RSI) appears relatively indefinite with a reading of 56.51, but the moving average convergence divergence (MACD) has been slowly trending cheerful since mid-February. These indicators suggest that the stock could see a breakout from these key defences underground levels to test January highs.
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Traders should watch for a breakout from power trendline resistance and the 50-day moving average at around $7.67. If victorious, the stock could move toward R1 resistance at $7.87 or the 200-day stirring average at $8.33 over the intermediate term. Traders may also see some consolidation between Maquis levels and lower trendline support at around $7.00 before a on ones way higher. A breakdown from these levels could lead to a retest of $6.65 stand for levels. (For more, see: Top 3 Solar Stocks.)
Chart courtesy of StockCharts.com. The writer holds no position in the stock(s) mentioned except through passively administered index funds.