To summarize all the good news, Canadian Solar is expanding big. The purchase of Recurrent, a San Francisco-based energy company has already expanded $CSIQ 's pipeline up 8.5 gigawatts, and an additional 1 gigawatt by the end of 2016. For this year, their sales are expected to increase a 39%, which is huge for a solar company. Finally, there is the news of the YieldCo. Which even though it is still up in just a plan, Canadian Solar is moving forward with the project and already has low risk projects assigned for the child company. $CSIQ will announce the creation formally soon.
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the chart
- The multi year long trend holding strong after testing, breaking down, and finally getting back on this month.
- The 100 ma finally moving above the 200 ma.
- The normal growth rally which $CSIQ hasn't experienced since October 2013.
- The sudden spike in volume to reject crossing the long trend line in no. 1
- The conquest of the dreaded $35 line and the rejection to close below sending the price to the next level at $37.
- One would think with such a rally, MACD would be gapped up and ready for a rest. Think again, MACD remain flat almost ready for a jump.
- RSI remains in rally mode. Playing over the overbought condition. The weekly chart, however, indicates a healthy 66 with enough push to drive us to the overbought
Read more about the why here below:
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the ratings
naughty chart's final trade
We remain Bullish on the entire sector and so remain Bullish on $CSIQ. Simple put, if you are truly a long term investor then hold and add on the dips. If you are looking for a swing trade, watch post ER volume, if positive ER then add in the morning dip and ride the wave that day and the next one. I would be happy with a quick 10% gain on few hours on the market. Shorts shouldn't even try. There isn't really anything negative about the company, the stock or the rally. You would be lucky to bet and earn on an Earning miss which is very unlikely, a macro event, or a stock rest.
GL TO ALL! |