GTAT has been consolidating for over three months on a relatively lower volume! You can draw your conclusions but definitely downward momentum that started about two years ago at 17.50 appears to had reached a bottom at or around 2.61. IMO, any weaknesses should be an opportunity to accumulate with 6.12 month investment horizon, etc.
Good luck to you all! I will see you all when we get there!
You call it risk/reward and I call it probability but it all mean the same. It was a nice support close to previous low and rebounded with a promising volume. We want to see it go down on a lower volume and go up in a higher volume. Often, we know all this, but we failed to notice the simpler things in technical analysis.
I think solar sector rallied because the new Chinese leadership finally decides to let STP, or one of their larger solar manufacturer, or employer seek reorganization. Again, it is counterintuitive but it is a decisive move that signals what the new Chinese leadership has in mind, etc. I think LDK could be next. By allowing some to perish, they are allowing others to go on and perhaps thrive, etc. There is definitely more clarity today in solar sector than it did yesterday. This clarity should allow others to plan and make new commitments in future capital expenditures, ultimately helping companies like GTAT down the food chain, etc.
For most part, the investment community has been avoiding the solar sector due to uncertainties resulting from industry related issues that we all are familiar with, etc. Finally, it appears that the cloud is lifting and there is some visibility going forward for the industry. The sooner supply side issue is better managed, the faster solar industry and sector can recover from this artificially drawn out process and healthier competition will emerge, etc.
There is more money looking for home then at any given time in our history. The perception is a fickle one and can change over night creating a bandwagon chasing and rotating out of risk on/off in the name of performance. In short, the solar sector could get hot again. I am betting that it will including GTAT by way of trimming some of the winners and rotating into some of the solar names, etc.