CSIQ Stock Trend Reversal
FOREX INVESTORS BUZZ Canadian Solar Stock Well, it didn’t take long for that pattern on the Canadian Solar Inc. (NASDAQ:CSIQ) stock chart to resolve itself, and now that the pattern is complete, bullish implications are expected to follow.
I originally outlined the pattern that was setting up on June 29, in a publication titled “Canadian Solar Stock on the Cusp of a Breakout.” I was particularity excited about the ramifications of this price pattern because numerous solar stocks have been staging an advance, and the move toward higher prices has been a sector-wide phenomenon. Sector-wide moves are particularly powerful, and, therefore, when a bullish price pattern is being painted on the stock chart, it is always wise to pay attention.
The following Canadian Solar stock chart illustrates the technical price pattern which is now suggesting that an advance is in development.
Canadian Solar Stock
These patterns are particularity significant because they suggest that a trend reversal is in the making, and they pinpoint when an investment transitions from a bearish trend into a bullish one. Transitions from bearish trends into bullish ones provide the best opportunities because the performance numbers that follow are usually the greatest.
The following Canadian Solar stock chart illustrates that the backdrop has also become bullish, which supports the same notion of higher stock prices.
Chart courtesy of StockCharts.com
The bullish backdrop I am referring to is being suggested by the moving average convergence/divergence (MACD) indicator in the lower panel of the CSIQ stock chart above.
MACD is a simple, yet effective, indicator that distinguishes between bullish and bearish momentum by using the crossing of a signal line. A bullish cross suggests that bullish momentum is influencing the trading in a stock, while a bearish cross suggests that bearish momentum is influencing the trading action.
In order to stage an advance, buying pressure is required, which translates into much-needed bullish momentum. The stock chart above determines, depending on which signal the MACD indicator is suggesting, whether Canadian Solar stock is staging an advance.
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