Energy Stock Bull

Canadian Solar (CSIQ) is another solar play that I’ve traded successfully. The stock is currently in a 3 month uptrend, and has potential to go even further given the current trend towards alternative energy/solar stocks. Volume on up days has significantly outpaced volume on down days, suggesting gradual accumulation. I’m going to ride this stock until the uptrend breaks.

First Solar, Inc. is definitely one of the superstar solar stocks in the market today. Since my last post on FSLR, it has rallied almost 40% past 300, at one point. It looks like FSLR is consolidating a bit around 300, but I don’t think that the bull run is over yet. A break above 300 would signal more buying. Keep it one your watchlists, and congrats to those who got in!

After a double bottom, First Solar Inc. (FSLR) broke out on strong volume. If it heads lower, it should meet resistance at around 200. MACD is turning up, as well.

China Sunergy (CSUN) recently broke out of a downward trend and looks like it may be entering a bull flag formation:

Suntech Power Holdings (STP) is one of the world’s largest solar cell manufacturers. The company has grown rapidly in recent years and says it is now the largest producer of solar PV cells in the world, with an annual manufacturing capacity of 420 megawatts (MW=1 million watts) as of Sept. 30. It expects to more than double that, to 1 GW of capacity by the end of 2008, a fourfold increase since 2006.

Suntech, says S&P equity analyst Mike Jaffe, has locked in a large number of orders for the coming years. Jaffe expects Suntech’s revenue will more than double in 2007 to about $1.4 billion, and rise by another 50% in 2008 as manufacturing capacity expands. Profit margins should widen during that time also, he says, as Suntech starts to receive cheaper silicon wafers under a seven-year contract that begins in midyear.

Source (Businessweek)

 MEMC Electronic Materials (WFR) makes silicon wafers used to manufacture PV solar cells. Demand for wafers has been increasing recently as sales of solar power cells increase.

Having started selling wafers to solar power customers only in 2006, MEMC now has more than $15 billion in orders for solar wafers for delivery over the next 10 years.

 Canadian Solar (CSIQ) is another solar stock that I am bullish on, with an ascending triangle formation:

First Solar, Inc. (FSLR) has been featured several times on this blog. While I think that it may be due for a pullback soon, I am still bullish in the long term on this company’s prospects. As you can see, it’s had a fantastic run this year:

First Solar, Inc. (FSLR) recently broke out of an ascending triangle formation. Resistance has become support at around 220. First Solar has gone on an amazing run over the past few months and could be headed higher.

Keep this one on your watchlists.

LDK Solar Co. (LDK) should be hitting resistance around $60. There may also be a pullback from the massive gains over the past few days. I’d definitely take some profits at this point.