Solar Stocks Bear Trap?
StatsEdgeTrading
Welcome to the Friday Market Finale, where we zoom out to look at weekly charts and recap key market movements across crypto, stocks, and FX. This week, we’re focusing on Bitcoin, the S&P 500, the solar sector, and the ongoing consolidation in China stocks.
Bitcoin and the Cup & Handle Setup
Bitcoin is still testing its strength, forming a prolonged cup and handle pattern on the weekly chart. Although we broke out last week, we saw a pullback this week, with the price recovering slightly. I remain focused on Bitcoin over other cryptos like Ethereum, as its resilience in holding support has been stronger.
Discretionary Pick of the Week: TeraWulf (WULF)
I’m keeping an eye on TeraWulf (WULF), a Bitcoin mining company that uses green energy sources like nuclear and solar. As Bitcoin consolidates, WULF has held strong. If Bitcoin begins a new rally, this miner could be well-positioned to follow suit. I’m already in from $5.35, watching for a potential breakout in Bitcoin to lift WULF higher
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Gold, the Dollar, and S&P 500
Gold continues its upward momentum, closing the week strong. Meanwhile, the U.S. Dollar shows relentless strength, defying expectations for a pullback. The S&P 500 has returned to a crucial breakout level, with any move below recent lows likely prompting caution for the bulls.
Sector Highlight: Solar Stocks
The solar sector is worth watching, particularly after it closed below key support levels last week but bounced back this week. With names like First Solar (FSLR) showing relative strength, this sector could offer upside potential if the bounce continues.
China Stocks: A Tight Consolidation
After a major run, China stocks (KWEB, FXI) are consolidating tightly. A breakout from this range could signal the next leg up, offering a potentially strong rally if momentum returns to the sector.
Key Takeaways:
Bitcoin: Testing the breakout level, still in play for a potential upside.
WULF: A Bitcoin miner holding support, benefiting from BTC’s consolidation.
S&P 500: Watching recent lows for support in this stair-step pattern.
China Stocks: Tight consolidation could lead to a significant breakout.
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