A quick update on our existing recommendations, FTI Consulting (FCN), Kinsale Capital (KNSL), and Vishay Intertechnology (VSH) look poised for more upside follow-through, so we are raising targeted levels as indicated below:
FCN: to $190 from $172
KNSL: to $307 from $285
VSH: to $21.60 from $19.67
To protect gains, we are also tightening stop-loss levels as indicated below:
Kinsale Capital (KNSL): $257 (~50-day MA) from $245
World Wrestling Entertainment (WWE): $70 (~20-day MA) from $67
Yesterday’s gap higher in solar and clean energy ETFs ended their corrective phase, for now at least, so we highlight a favorable setup for Invesco Solar ETF (TAN):
Yesterday, TAN gapped off long-term support as defined by the 200-day moving average, completing the corrective action that followed its summer breakout. The “breakaway gap” is a bullish signal, and with short-term momentum indicators turning up from oversold levels, TAN is set up to continue higher.
Longer term, TAN is tracing out a possible base after digesting strong gains from the 2020 uptrend. A successful test of the 200-day moving average would contribute positively to the basing process and preserve a potentially favorable setup.
Resistance from the August high near $90 can be used as a targeted level. Two consecutive daily closes decisively below support from the 200-day MA (~73) can be used as a stop-loss to manage risk inherent to bear market cycles.
Invesco Solar ETF (TAN, $74.24):
Target: $90
Stop-Loss: $73