Canadian Solar ( CSIQ) is a leading manufacturer of solar photovoltaic modules, and provider of solar energy and battery storage solutions. After spending a couple days recently in Vancouver on the way to an Alaskian cruise I found this company interesting. Let's check out the charts together.
In this daily bar chart of CSIQ, below, we can see that the shares have been basing since December. Prices found buying interest in the $26-$22 area. CSIQ is trading above the rising 50-day moving average line and above the rising 200-day line. The 50-day line crossed above the 200-day line in early August for a bullish golden cross buy signal.
The daily On-Balance-Volume (OBV) line shows strength from October and confirms the price gains we have seen the past year. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In the weekly Japanese candlestick of CSIQ, below, we can see the price action of the past three years. The shares are trading above the now rising 40-week moving average line.
The weekly OBV line shows strength the past three years and that is pretty impressive. The MACD oscillator crossed above the zero line in July for an outright buy signal.
In this daily Point and Figure chart of CSIQ, below, we can see a potential upside price target in the $65 area.
In this weekly Point and Figure chart of CSIQ, below, we can see a potential price objective in the $88 area.
Bottom- line strategy: I consider it bullish when I see solar stocks strong in the U.S. and in other markets. Traders who don't mind investing in companies based outside the U.S. could go long CSIQ towards $42 risking to $37. The $65 area is our price target for now.
