The Clean Energy sector saw a lion-like 2020 and then a violent correction in 2021. The war between Russia and Ukraine has brought this sector back into the global spotlight. Especially for Europe, it is now obvious that Russia is not a reliable partner and therefore we must put the accelerator on energy alternatives capable of making us independent in terms of energy. Renewables will surely play a primary role in this context and in fact the sector indices have regained strength.

We take the iShares Global Clean Energy ETF as the industry benchmark. The bottom, after touching the supportive band between $17.2 and the 61.8% Fibonacci retracement, seeks a strong restart. In fact, the ETF has returned to just above $20, close to the static resistance of $21.2, which also corresponds to 50% of the Fibonacci retracement. The 200-period moving average is also approaching here. This is therefore a fundamental threshold. If the ETF were to break this level, a LONG strategy can be activated with a target of $24 and $26.

We recommend going on LONG on the ETF at the closing break and with volatility of the resistance at $21. In the event of a breakout without volatility, it is better to wait for the next session to confirm. You can trade by buying the Leverage Shares 3x ETP on iShares Global Clean Energy ETF (ISIN: XS2399371017), with a short-term target of around $24 and $26. Alert/stop loss should be below $20.3 (closing daily).