Tuesday, October 28, 2014

Wind Energy ETF (FAN) in trouble...

Wind energy ETF (FAN) had a long run-up since 2012 from 5,5 to 13,5$.It topped out during summer 2014 and it is now in a downtrend.

Recently FAN broke down its long-term support trendline since 2012(red circle) although immediately managed to go above this trendline. The penetration of this trendline caused a lot of technical damage to the chart.

Currently, after being oversold, FAN is in a corrective uptrend.

We believe that price will move initially towards 11,2 and then finally towards 11,5 where a descending trendline, a resistance line(red line) and 55 exponential moving average converge.We suspect that FAN price will bounce there and then resume its downtrend.