As previously noted and expected, the momentum players and long-term shares holders locked in profits and, for some, perhaps broke-even after successfully bringing down the average share prices, etc. As someone noted on this board, we should always expect profit taking after such a big move, percentage wise, in such a short time. However, what it does (profit taking) is that it essentially cleans out the overhead resistance (less shares available for sale), and it paves the way for easier path going forward, etc.
HSOL has been consolidating for the last 18 months as solar industry works through issues that we all are familiar with, etc. This portends better times going forward. This is based on many previous studies completed where longer the basing period the greater the explosiveness of its move, etc. The stock moved the way it did for a reason after such a long basing period. My personal feeling is that the solar industry is about to awake from its long winter sleep. Matter of fact, many solar stocks have been doing exceptionally well in recent weeks—some several hundred percentage gains. My feeling is that if you waited this long, be patient. There is no reason why HSOL can’t move on its own. As my dear friend said before, “If you cannot resist temptation, you absolutely must not manage your own money.”
Both of my last two holdings that in which I got out recently were pretty much in a similar situations, etc. Yet, with patience, I was able to see the rally through instead getting out too prematurely where there were many temptations along the way.
I believe HSOL and related stocks moved the way it did for a reason after such a long and arduous consolidation. It doesn’t make sense to bestow x2 market cap for a bankrupt company (STP) then HSOL. Certainly, HSOL lacks institutional participation. That could change in a hurry and it must change for long-term price appreciation to take place. Every stock has its unique collection of retail traders, and without a doubt, we have one here. I am convinced that without institutional interests, consolidation could go on for a bit longer while everyone is celebrating. Yet, I am encouraged that somebody is looking our way. I don't go into stocks with no institutional money managers presence.
I would like to leave with two price targets for those of you who wanting to know: immediate target: $2.51; intermediate price target: $4.75. Please keep in mind that once price action reaches 2.51 then the next target or resistance will be 4.75... For those of you who follow Fibonacci golden rules: as of today's intraday low of around ~1.32, it is exactly 63.7% retracement (0.95/1.97).