Canadian Solar CSIQ-Q (Friday’s close US$37.25) rallied from US$12.00 in 2020 to US$67.39 in 2021 (A-B) but reversed the trend later the same year as it fell below the 40-week Moving Average (40wMA – C). However, the stock settled in a very bullish trading pattern consisting of two horizontal trading ranges: the first between US$32 and US$46 and the second between US$24 and US$38 (dashed lines). The recent rise to US$47.69 signalled a breakout from the two-part base and the start of an uptrend toward higher targets (D).
Behaviour indicators including the rising 40wMA confirm the bullish status. Canadian Solar is currently in the midst of a minor correction toward the 40wMA to provide a good entry level; only a sustained decline below US$32-33 would be negative.
Point & Figure measurements provide targets of US$49 and US$54. Higher targets are visible.
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Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart source: www.decisionplus.com
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