China Solar Stock Breakout, TSL

Wednesday's breakout on Chinese solar stock Trina Solar Limited (

) blazed the way for sharp rallies across its industry group. As TSL shot up 5% on more than twice its daily average volume to levels it hadn't seen since January, peers LDK Solar Co. Ltd. (

), +4%, Energy Conversion Devices (

), +3.5%, and Evergreen Solar Inc. (

), +5.5%, are all attempting to come off lower base formations. We've been watching TSL for months now as top stock with steady quarterly earnings growth. From at technical perspective, its high volume breakout has triggered a buy signal as it looks to make its way north of a multi-year base. The longer the base the better. The more volume the better. What TSL lacks is a strong industry group. Overhead resistance, or a price history that shows higher levels where investors got burned, threatens to create abundant selling opportunities for holders of LDK, ENER and ESLR, should their stocks begin to drift back higher. The situation is a lot different for TSL, which holds much higher relative strength against the broader market, and wouldn't face any overhead resistance as it moves into uncharted territory.