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Fan Yang

Canadian Solar Inc. (CSIQ) Price Bottom vs. Resistance Trendline

Canadian Solar Inc. $CSIQ has been rallying since mid-2018, seemingly after completing a price bottom. It is now being challenged by a falling trendline resistance. Will the bullish trend continue?

CSIQ Weekly Chart

(click to enlarge)

Price Bottom:
- There are several signs of a price bottom.
1) Price held above $11 since 2017, stopping a choppy decline since 2014. 
2) After consolidating sideways for a couple of years, price broke above the consolidation range in late 2018. 
3) Price made higher highs and higher lows going in 2019. One of these higher lows bounced off of $17, which showed that the market respected the moving averages as support. This was both a confirmation of the price bottom, and a critical "slingshot" signal.
4) The RSI has pushed above  70 and has since held above 40 - this reflects the maintenance of the 2018-2019 bullish momentum.
- While there are signs of life for CSIQ, it looks like bulls are still tentative when price came up to a falling resistance trendline.
- There appears to be a squeeze, which reflects a tentative battle between bulls and bears in this market. 
- Finally, we should monitor the $20 area. If price can hold above $20, I think bulls would have the edge. If price indeed holds above $20 and comes up to test the resistance around $24.50, I think price will break out.
- Eventually, a push above $25 would be a good sign that bulls are in control. This should open up the $30 level, and re-affirm the $20 level as the new support/anchor. In other words, if price rallies but holds under $30, we can expect the next period of consolidation to be between $20 and $30. 

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