Over the last four days, Sunpower Corporation (SWPRa) completed a successful retest of the March lows (intra-day low of $19.70, closing low of $20.91). The next price target is around $26.25 with a close of the gap created by the news of accounting irregularities at its Philippine manufacturing operations. This price level will likely meet with heavy resistance and selling pressure as both the 50-day moving average (DMA) and 200DMA are converging there. The chart below shows the high-volume buying off the bottom. I have now added to my position in the stock.
*Chart created using TeleChart:
Be careful out there!
Full disclosure: long SPWRa
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