Chris Vermeulen of The Technical Traders talks about the Invesco Solar ETF (TAN) trade setup.
TAN was one of the strongest sectors back in 2020 after the Covid crash. We saw almost a 500% rally in this sector and since then it has sold off and a very big way.
Recently, TAN has been forming what looks to be a bottoming formation known as a double bottom. Based on this pattern, there are a lot of upside targets. One of the reasons why we are seeing the TAN sector do well is that it is clean energy and alternative energy to the high crude oil prices. As people continue to worry about high fuel costs, they begin to explore other energy and income solutions.