Solar: STP

STP is experiencing one of several patterns currently, all of which indicate a higher future. It can also be interpreted as retesting the breakout of a pennant, which is also a high, tight flag pattern. A high, tight flag is a pennant (triangle) or flag (rectangle) that follows doubling of price in a period of two months or less. Before entering the pennant, STP rose from 5.09 to 15.45, easily qualifying. Target calculation for the high, tight flag is (15.45-5.09)+12.03=22.39.

This target can be said to be a failure since it only made 19.31--so far. STP instead has been busy challenging its 200-day moving average, which often gives stocks pause when they attempt a crossing. STP has attempted it three times, with the third now in progress and not in much doubt. If this period of challenge is interpreted as a double bottom, it confirms when price exceeds the 17.41 central peak, thereby gives a target of (17.41-12.35)+17.41=22.47. This is comfortingly similar to the high, tight flag target of 22.39.

Should the pattern be interpreted as a descending, broadening wedge, the price has broken out and the target calculates as (19.31-12.35)*79%+19.31=24.80.

If interpreted as a cup-with-handle, an interesting phenomenon occurs--the handle is a smaller-scale cup-with-handle. The 18.28 level indicates both a breakout from the cup-with-handle and previous day was a close above the 200-day moving average. Target for the cup-with-handle calculates as (18.28-12.35)*50%+18.28=21.24. That becomes the most conservative target of the many. Fading volume during the handle indicates a lack of sellers, thus will be a buy indication when price jumps on increased volume. The single spike making the 18.28 price could be judge as a spurious data point, meaning the bulk of the data around 17.75 would be a better indicator for a buy signal--especially if the level breaches on higher volume.

The smaller cup-with-handle is also a pennant preceded by the movement from 12.35 to 18.28. When exceeded, it provides a target calculation of (18.28-12.35)+18.28=24.21, based on "the flag flies at half mast" adage.

Finally, the Point&Figure chart gives a target of 28.

In summary, attractive targets abound, numerous patterns have confirmed, meaning STP is already a buy.