Canadian Solar Inc. (NASDAQ:CSIQ)

Q:Hey Chip, Good call on CSIQ; you really nailed it! Personally, I love the company and have been jumping in and out of it with mixed results.  I really don’t know what I’m doing when it comes to stock investing (I’ve lost money almost every trade I’ve ever made), but I really want to get back into CSIQ now.  What are your thoughts on the company – from an investment perspective?  Would you invest your own money at this point in time?

Any advise is greatly appreciated!

A: Thanks for the compliment.  It looks like CSIQ could be bottoming here but there is a little bit of downside risk as the stock could try and test its 200-day moving average at around $8 before resuming the Uptrend.  Sometimes within Downtrends you get these pauses, and then a stock could either continue to go down or start a new rally.  Trend trading waits for some confirmation that a rally can resume before issuing a buy signal.  Just look at a few weeks ago, from 6/24 to 7/1 when the stock looked like it was flattening after dropping from $16 to $12.  But it wasn’t done.  The stock fell another 2 points to under $10.  Notice also SmarTrend kept it in a Downtrend the whole time.  So unless you are feeling aggressive and ok risking $2 more to the downside, you could benefit from a little patience just to be sure.