I know, I know. .another top 10 list.  But this one’s a bit different.  It’s called a Top 10 list but I’m only including 5 (how’s that for daring and different eh?) of the top green energy stocks based purely on technicals because I can’t find 10 with great technicals!  I’ll include another 5 if this market gets going again.

Drum roll please…

Coming it at the top spot is a stock I’ve been highlighting quite a bit here over the past several months – Aerovironment (AVAV).  It remains one of my top picks.  The stock is a bit extended up here, so I’d prefer it on a pull back but it’s been one of the few stocks in ANY sector that continues to trade around all time highs.  That alone is bullish action.   I’d prefer to get it on a return to the 50 day moving average around 34 – 35.

Next up is First Solar (FSLR).  This is a company that is largely considered one of the top solar companies around and I’d have to agree.  It’s no accident that technically it also ranks up there with the best of the solar plays.  I mentioned a few months ago that it was a buy anywhere near 100 and it ran up 60% from those levels in a hurry, but needed to rest.  It’s resting now and may be poised to run again.  It needs to hold above the 50 day moving average around 130, then breakout again with volume.  If it can do that, look for a test of resistance at 180. 

Trex, which manufactures alternative wood products primarily for decking and fencing isn’t a company as fundamentally strong as AVAV or FSLR, but it’s exhibiting surprising strength in a tough market.   The stock continues to trade above both important levels of support of the 50 and 200 day moving averages and may be preparing for another break and test of the Oct 08 highs around 22. 

Cree has been in the news quite a bit of late with its LR24 commercial LED lighting product, a partnership with Mitsubishi, a big order from the Pentagon and recently reported very strong earnings results.  It’s no surprise that the stock has really run up on all  this positive news and reclaimed support of the 50 day moving average. Volume levels indicate that institutions are putting money to work in the stock but it’s a bit overextended here and needs to come back and test the 50 dma (in blue) around 16.50.  If it can do that in an orderly manner, it would provide a real nice entry point. 

Last but not least is Esco Technologies, which Deutsche Bank called its top green tech pick.  The stock soared off the Nov low, running up about 70% in just one month to resistance of the 200 day moving average in red (at 42.50).  It certainly needed to digest that gain and it’s done so, now attempting to to find support at the 50 day moving average at 35.  If it can bounce off that level with good volume and break out of this 3 week consolidation, that may provide a good entry point.

 

Disclaimer: I don’t currently own any of the positions mentioned, but may soon!