BY Dennis Hobein:

Contributor, Stock Traders Daily

Real Time Trading Reports:  Included are detailed trading reports designed to help investors realize opportunities in these companies.  The reports are linked to the stock symbols in the article below.

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(La Jolla, CA)  Most people realize by now that the price of oil has been cruising higher over the past few weeks. One way to notice this is to simply stop at the local gas station and fill up the tank. The low prices we were enjoying throughout 2009 are history, and the likelihood that the pinch at the pump will worsen is high. Further evidence of the rise in oil is to look at the strong performance of the Energy Select SPDR Fund (NYSE: XLE), which is already up more than 6% in 2010.

This morning, news came out of China stating that exports from that country rose 18% in December. This was fairly significant news because it marked the first time in 14 months that exports out of China increased – a positive indicator that the global recovery is making strides. This news also had the effect of pushing crude oil prices higher, because if production is increasing, then demand for energy and commodities is also increasing. Clearly, this is good news for oil and gas companies such as Exxon Mobile (NYSE: XOM). But, there is another group of stocks that could benefit from surging crude oil prices – solar and alternative energy.

High Oil Prices Makes Solar More Attractive

People don’t complain too much when gas costs $2.50/gallon or less at the pump. But, when it goes above that $3 level, clamoring for “energy independence through renewable resources” becomes much more prevalent. Invariably, one of the first areas of focus is on solar energy, because that technology has evolved to the point where energy can be generated efficiently enough to make it a feasible alternative. For example, First Solar (Nasdaq: FSLR) says that its cost per watt has decreased from $2.94 in 2004 to $1.08 in 2008. The causes for the better efficiencies are complex and can be difficult to understand, but one of the most important progressions in the field has been the advancement of thin-film based solar modules. The typical thickness of thin-film is less than 1% if a typical crystalline wafer-based cell, driving the cost down substantially. Another producer of thin-film modules is China-based Suntech Power Holdings (NYSE: STP).

Looking At SunPower’s Technicals

With the fundamental picture potentially improving as crude becomes more expensive, and as solar module inventories continue to correct, we wanted to take a quick look at the technicals for another solar stock – Sunpower (Nasdaq: SPWRA). As a reminder, please refer to our “Free Trading Reports” on any of the stocks listed here for a more detailed analysis. One of the biggest laggards of the group has been SPWRA. Since the beginning of 2009, that stock is down roughly 35%. During this period, a clear range has formed in the $20-$32 range, with the stock recently trending off the bottom to the middle of that range. Momentum seems to be in its favor as it advanced above its 20 and 50 day moving averages at the beginning of the year. Strong overhead resistance lies at the top of the $32-$33 range. In fact, the stock hit that area four times from June-Nov last year, and subsequently sold off sharply as it couldn’t make a clean break through that price level.

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