The Sun Is Beginning To Shine On This Group

I featured a chart in my Daily Market Report to EB.com members yesterday of the renewable energy group ($DWCREE).

There's a beautiful positive divergence on the weekly chart that suggests the industry could have another 20% of upside potential - just to reset its weekly PPO at the centerline. If this were to occur, I'd want to know which stock or stocks in this space might be poised to make a big move. Enter Jinko Solar (JKS):

First, it's rather amazing that any growth stock is currently testing its 52-week high, but that's exactly what JKS is doing right now. I like to use candle bodies (high open/close) for breakouts. In the case of JKS, the 52-week high close occurred on November 16th at 63.88. Yesterday's intraday high was 63.88. JKS is right there, on the cusp of a very significant breakout in a market that HATES growth stocks. I think it could also represent a great trade on an upcoming 20-day EMA test - with a tight stop in place, of course. If the S&P 500 has set a bottom or is even approaching one, I believe JKS is going to be a big beneficiary of the next secular bull market rally. Keep this one on your Watch List!

Happy Trading! Tom Bowley Chief Market Strategist EarningsBeats.com Better Timing. Better Trades.