Canadian Solar Inc. (NASDAQ:CSIQ) Trading Update

Posted by: : Shayne HeffernanPosted on: February 3, 2015 Canadian Solar Inc. (NASDAQ:CSIQ) Trading Update

Canadian Solar Inc. (NASDAQ:CSIQ) Trading Update

CANADIAN SOLAR closed up 3.930 at 25.250. Volume was 3% below average (neutral) and Bollinger Bands were 19% narrower than normal.

Open High Low Close Volume___
23.470 25.480 23.460 25.250 3,321,936

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 20.44 22.79 28.07
Volatility: 99 83 82
Volume: 2,649,359 2,786,921 3,477,879

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Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

On 2/3/2015, CANADIAN SOLAR closed above the upper band by 15.4%. Although prices have broken the upper band and an upside breakout is possible, the most likely scenario is for the current trading range that CANADIAN SOLAR is in to continue.

Making the picture somewhat unclear is the fact that Bollinger Bands are 22.29% narrower than normal. The current width of the bands (alone) does not suggest anything conclusive about the future volatility or movement of prices.

HEFFX Candlesticks

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.

During the past 10 bars, there have been 6 white candles and 3 black candles for a net of 3 white candles. During the past 50 bars, there have been 27 white candles and 22 black candles for a net of 5 white candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 3 rising windows in the last 50 candles–this makes the current rising window even more bullish.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.


CANADIAN SOLAR gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.

CANADIAN SOLAR is currently 10.0% below its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of CSIQ.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on CSIQ.O and have had this outlook for the last 0 periods.

HEFFX Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 92.3502. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 6 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 66.79. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 7 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 236.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 6 period(s) ago.


The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 2 period(s) ago.

Canadian Solar Inc. (CSI), incorporated on June 1, 2006, is a Canada-based Company which designs, develops, and manufactures solar wafers, cells and solar power products. The Company’s solar power products include standard solar modules and specialty solar products. The Company’s products include a range of solar modules built to general specifications for use in a wide range of residential, commercial and industrial solar power generation systems. Specialty solar products consist of customized solar modules that its customers incorporate into their own products and complete specialty products, such as portable solar home systems. The Company’s major markets are Canada, USA, Japan, China, Germany and India.

The Company’s standard solar modules are arrays of interconnected solar cells encapsulated in weatherproof frames. The Company produces a wide variety of standard solar modules, ranging from 3 watt to in excess of 300 watt in power and using multi-crystalline or mono-crystalline cells in several different formats, including general purpose 60 pieces 6 inch cell and 72 pieces 5 inch cell formats, larger formats of 72 pieces 6 inch cell for ground-mounted projects and small modules for specialty products. The Company’s specialty solar products mainly include Andes Solar Home System and Maple Solar System.

Andes Solar Home System (Andes SHS) is an off-grid solar system, designed to provide an economical source of electricity to homes and communities without access to grid electricity or where electricity supply is scarce. The Andes SHS is portable, light-weight, and easy to set-up, making it ideal for situations where emergency power is required. Maple Solar System is an economical, safe and clean energy solution for families who burn kerosene for lighting when darkness falls. Maple Solar System includes a solar panel, energy efficient LED lights, Li-ion batteries and multiple cell phone charger plugs.

In the second half of 2012, the Company started to provide O&M services for solar power projects in commercial operation. Depending on the terms of our O&M service contracts, our O&M services include inspections, repair and replacement of plant equipment, site management and administrative support services. A solar system kit is a ready-to-install package consisting of solar modules produced by the Company and components, such as inverters, racking system and other accessories, supplied by third parties. The Company began selling solar system kits in 2010, and today it sells them primarily to the Japanese and Canadian markets.

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Shayne Heffernan Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

Trade FX, Equities and Options with the World's Leading Platform , call our trade desk 631 482 0376, or contact us to get started.

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