The Clean Energy sector has been just as hot as the EV sector in 2020. Both sectors appear to move together in some degrees. Polar Power is one of those companies that has exploded off the March 2020 low, moving from 95 cents to a high of 30.82 in early 2021. This represents a 3300% advance. As far as this company has rallied, the chart is favouring another leg higher. Lets take a look at their company profile:
“Polar P0wer designs and manufacture power and cooling systems for targeted market applications. In particular, they offer DC power systems, DC hybrid power systems, and DC solar hybrid power systems for telecommunications, military, renewable energy, marine, automotive and oil field applications. Polar Power solutions provide reliable and low-cost energy for applications that do not have access to the utility grid or will continue to power applications in the event of utility grid failure.”
Lets dig into the charts!
Polar Power Elliottwave View:
Medium term term view from the all time low in March 2020. This stock rallied in a leading diagonal structure for ((1)) before pulling back in ((2)). After that, a powerful impulse wave took place. From the ((2)) low at 3.71 it was non stop advance into the peak at at 30.82 on January 25/2021. This is labeled as Red I on the chart above. After this peak, a large pullback has taken place to correct the entire cycle from March 2020 low. This pullback was structured as 3 waves pullback which reached the extreme area (blue box) at 9.05. After prices breached the blue box, buyers entered into the market for a bounce.
At this present time, the structure off the 7.97 Red II low set on March 5 is looking like a double nest. This is labeled above as Blue (1) (2), Red 1 2. It should be noted however, that until prices exceed the January high, this advance may simply be a large corrective bounce before moving back lower again. But at this time, further extension higher is favoured.
In Conclusion, as long as the Red II low remains intact, prices can advance in a Red III higher. Consequently, Red III can reach the equal leg area of 37.88 to 56.37 before pulling back in the longer term.