Renesola Breaks Out as Entire Solar Sector Shows Life

Renesola Ltd. (SOL) traded sharply higher Friday with little new company specific information has been released. At ZachStocks we have been watching the solar sector carefully over the past months and found plenty of great opportunities in the area now that investors are once again warming to the alternative energy area. For Renesola to rally without specific news is certainly a positive thing and it may represent one or two large institutions building a new position.

Some have speculated that since SOL has crossed over $5 per share, it is now eligible to be held in many mutual funds who prohibit their managers from buying stocks with prices lower than $5. While this makes little fundamental sense, sometimes technical levels like this can provide the catalyst needed to get stocks running to a point where they are more closely trading with their fundamental values. At this point it appears the fear of a major collapse in solar energy is being brushed aside and liquidity concerns are no longer the driving issue for investors.

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