Most of Wall Street is focused on the oil market, but there are important dynamics occurring in other parts of the energy markets as well.
The Invesco Solar ETF (NYSE:TAN) invests in a basket of stocks of companies that are in the solar industry, and it has just crashed into a wall of sellers around the important $77 per share level.
From July through October, $77 was a support level. Many investors bought TAN at that price. It moved higher and investors were making money, but then it fell back through $77.
A number of investors now regret buying and decide to sell if they can do so without taking a loss. As a result, they place their sell orders at their buying price.
If there are enough of these sell orders, it forms resistance as it did around $77. This could continue to keep a top on the price.
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