There is a stock market saying Penny expensive, pound cheap as lots of investors would not buy a penny share because of the risk but would consider buying if the price rose.

Similarly with Renewables lots of investors will not take the risk of buying because of the high yields but IF/WHEN the price rises and the yield falls they may be enticed back into buying.

  • Capitulation is the moment in which investors/traders lose hope in their long position and liquidate at a loss.
  • When investors/traders capitulate, they sell for fear of a continual decline in the stock price.
  • The end of a capitulation can present a buying opportunity due to the opinion that everyone who wanted to sell has already done so.

If you read any BB’s, you would have seen lots of investors posting they have sold out, capitulation.