We were due a rally. Good news provided the fuel, which is always nicer than just a technical bounce.

Here is that news:

• Chinese solar company Trina Solar Ltd. said Tuesday it will supply Italy’s largest power company with 17 megawatts of photovoltaic modules. Trina signed a two-year agreement with Enel.si, a subsidiary of Enel, to supply the modules in 2008 and 2009. Jifan Gao, Trina’s chairman and chief executive, said in a statement that the company looks forward to building its relationship with Enel and further its sales and brand recognition in the Italian market.

This is pretty good, as Italy is one of the fastest growing solar markets in the world:

• The JP Morgan chart projects that the fastest-growing markets in the next four years will be Greece, expected to grow 135 percent, followed by South Korea expected to grow 89 percent, and then Italy, which is expected to grow 65 percent.

From the Q1 2008 conference call:

• So, markets like, we told you before, Italy will be very strong for us where Trina Solar has around 20%-23% market share

From the Q3 2007 cc:

• In our key growth market of Italy, where we are targeting sales equal to 20% of total country demand in 2008, we are already working with several of the largest and fastest growing national distributors. Additionally, we have signed an initial contract with EniPower, one of the largest energy company in Italy.

Now, here is the chart:

You see that we just came from lower lows than the big sell-off that ended in March. We’re not yet convinced this break-out is here to stay. It is a nice jump though.