Charting Of Solar Stocks - SOLF, FSLR, ESLR, ENER, CSIQ, STP

Suntech Power Holdings (STP) is forming an ascending wedge with higher lows. I would suggest a long entry point on the day it closes above $50 on strong volume. There must be a clean break through the 200-day MA.

Canadian Solar (CSIQ) formed a descending triangle, broke down, and is now testing resistance at $26. Note the bearish cross over between the 50-day and 200-day MA’s. I expect a failure at this level and for CSIQ to hit $21. Make note of the higher lows.

Energy Conversion Devices (ENER) was a favorite long stock of mine, but you can’t fall in love! ENER tested the 50-day MA and failed horribly yesterday. I am adding ENER to my shortlist for Monday. Note the lower highs from the double top formation.

Evergreen Solar (ESLR) is also added to my shortlist for Monday. This is a short-covering rally and it appears to be losing steam. Note the doji’s at the short-term top signaling indecision. If the stock gaps down below $6, It’s an automatic short right at the open.

First Solar (FSLR) formed a descending triangle, broke down, and tested resistance at the 200-day MA and failed. I expect FSLR to head lower and if Monday is a down day, it’s a possible short candidate. Note $200 as major support.

Solarfun Power Holdings (SOLF) is a strange stock that is very susceptible to large rallies and the subsequent crashes. There is no clear direction for this stock and if it takes me this long to figure out a low-risk entry point, then I won’t trade it.

Posted in Categories: Canada, Contributor, Energy, External Research, Stocks.

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