Five Star Stock Watch: Canadian Solar
Solar stocks were some of the high flyers in 2013. Most of them doubled, tripled, quardupled, or in Canadian Solar's case, went up ten-fold.
If you follow those solar stocks, then you've noticed that they've been stalling as of late. Canadian Solar is no exception.
Is this stall temporary, or just a pause before heading even higher? Check the analysis of Canadian Solar's stock below and see for yourself.
The company: Canadian Solar, Inc.
Ticker Symbol: (NASDAQ: CSIQ)
Industry: Semiconductor - Specialized
Canadian Solar Inc. engages in the design, development, manufacture, and sale of solar power products worldwide. The company offers solar wafers, cells, and solar module products that convert sunlight into electricity for various uses.
See also: Five Star Stock Watch: General Motors
Its products include a range of standard solar modules for use in a range of residential, commercial, and industrial solar power generation systems.
Please take a look at the one-year chart of Candian Solar below with added notations:
At this point, Canadian Solar's uptrend remains intact. The first sign of trouble for the stock would be on a break of the highlighted trendline support.
Confirmation of the broken trend would be if the stock also broke what has been a great area of support at around $35. However, judging from where the stock currently sits, traders looking to buy might find now to be a good time.
See also: Five Star Stock Watch: Ford
Canadian Solar isn't set to release earnings until the first week of March 2014.
No matter what your strategy, or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
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Tags: Five Star Stock Watch