“Now, when oil gets its groove back, the pin action also extends to other parts of the market,” Cramer said. “When oil’s expensive, there’s a lot more demand for alternative energy sources, hence why the solar stocks broke down when oil collapsed in 2014 and why they’ve been making a monster comeback of late.”
The daily chart of First Solar supported this theory. After a jump higher in March, shares of the solar energy play have been consolidating on low volume, which Lang interpreted as a sign that institutional buyers are staying in the stock.
“The fact that First Solar put up this kind of trajectory during a difficult month makes it stand out to chartists like Lang,” Cramer said. “After First Solar spends some more time trading sideways, Lang expects it to rally past this ceiling of resistance. The stock’s currently at $70, he sees it going to the $80s before too long.”
The “Mad Money” host added a caveat: “This is Lang’s favorite name in the space, but it’s run up a lot, more than doubling. I say stay calm. Be a little cautious.”
Lang also liked the daily chart of Solaredge Technologies, another renewable stock that has doubled in just the last seven months.
Like First Solar, shares of Solaredge have been consolidating lately on low volume, suggesting that the big money is not yet ready to sell. Better yet, after a major surge in late February and March, the Chaikin Money Flow oscillator has ebbed, but is still in positive territory — also a bullish sign as the stock digests its gains.
“Bottom line? The charts, as interpreted by Bob Lang, suggest that some of the better performing oils and solar stocks could have more room to run,” Cramer said. “Anadarko, ConocoPhillips, First Solar and Solaredge all managed to at least partially defy the gravitational pull of the averages — Lang’s betting these winners will keep on winning. I think he makes a compelling argument, although I’d be more selective. I say stick with long-term Cramer-faves Anadarko and old friend First Solar.”