Solar Stocks: The Technical Picture
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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.
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