Top 5 Bullish ESG Charts this Week
Here are the five most interesting looking environmental stock charts this week from my scan of the 220 U.S. listed environmental stocks I track. In no particular order.
AQMS – Aqua Metals
The daily chart here shows Aqua Metals is set up to have a golden cross of the 40-day simple moving average (in blue) through the long term 252-day moving average (in purple). AQMS already crossed the 126-day two weeks ago, usually my preferred long term moving average and is also set up to cross the widely watched 200-day soon too. Regardless of the long-term MA, they’re all starting to trend upward, which is a sign shares have shaken off a lot of the negative bias. From experience (i.e. I have no data) golden crosses with upwardly sloping moving averages tend to be much more reliable than traditional golden crosses, which don’t weigh MA slope. That just makes logical sense too. The yellow line here is the 10-day MA. Aqua Metals is an intriguing company, with a water-based, closed loop method of recycle lead for use in battery – far more environmentally friendly than mining and processing lead ion traditional methods.
ADI – Analog Devices
ADI’s chips are used in smart grid applications and managing buildings various mechanical systems energy efficiently, which are prime areas for reducing energy usage to adjust to climate change. They’re also used for self-driving vehicles, which I consider a negative environmental development. But for now, ADI resides in my Eco universe. The daily chart this week wasn’t great, but the down days came slightly lighter on volume and there was strong volume on Friday’s up day. I’m partial to strong action one way or the other on Fridays, as a signal of either investor fear of missing out or fear of holding the bag with what the weekend may bring. Anyway, the weekly chart for ADI here is mixed – an engulfing pattern this week isn’t great, but the daily and monthly charts are better. Shares are about $45 from their all-time high all the way back in 2000. Does resistance persist for 19 years in individual equities?
NEP – NextEra Energy Partners
NextEra Energy looks like it made important progress this week, completing a double bottom that started with a mid-December plunge, on the left of the weekly chart here. The blue horizontal lines show the bottom and the lip that NEP firmed up over this week. As you can see from the autumn of 2018, it’ll take some effort to work through up to $50. The weekly and monthly charts (not pictured) make me think NEP is just in a long trading range, with $38 the floor at $50 the ceiling. So breaking either of those would be significant. NextEra produces more solar and wind energy than any utility in the world.
ENPH – Enphase
It may seem counterintuitive, but Enphase’s down week looks bullish to me. The teal lines added here show that shares have made a flag formation – a relatively direct and steep ascent higher (the flagpole), followed by a modest, orderly retreat downward (the flag). This is usually a sign of some profit taking and shares taking a needed breather. Friday’s engulfing candle hints that the downward portion is likely complete. This should be setting up shares to eventually test heavy resistance up close to $16, the measured target indicated by this flag formation. Founded in 2006 in California, Enphase makes microinverters, the tech for small scale, residential solar.
OLED – Universal Display Corp
The weekly chart here shows OLED gapped higher in late February, from earnings announced on February 22. That leap is a bullish move that looks even better long term because the $128 area had been established as significant resistance multiple times, as the blue dotted line indicates, and also closed off a bottom formation that began last August. This week shared edged downward on unconcerning volume and really didn’t surrender much of the recent gains at all. Pull up a daily chart and you'll see Friday’s healthy green candle, telling me the bulls still appear motivated. Universal Display's main product are OLEDs – organic light emitting diodes – which are thin sheets of a organic (here meaning carbon-based). They use far less energy than regular LEDs.