Shoals Technologies pierces downward trend line - Analysis - 07-06-2022

Shoals Technologies Group's stock surged 21.48% in the last session, or 3.3 points, settling at 18.66, with trading volumes surpassing 5.8 million shares, above 10-day averages of 2.6 million shares, after US President Joe Biden announced an emergency state to fix the drop in solar cell supplies, allowing Cambodia, Malaysia, Thailand, and Vietnam to export to the US without paying customs in the solar cells sector. 

Technically, the stock pierced the main downward trend in the short term, while still trading above the 50-day SMA, amid a spike in trading volumes, and with positive signals from the RSI despite reaching overbought levels. 

Therefore we expect more gains for the stock, targeting the first resistance at 23.00, provided the support of 14.56 holds on.

Expected trend for today: Bullish