Quote from PennyTrader:
Depends on the timeframe you trade. If you do swing trading or position trading, yes, this is just the start of the drop. The market and the stocks have more room to drop in the weeks/months ahead based on weekly charts . If you do quick trades say 1-2 days, we might have a relief bounce based on hourly charts.
Here is an example on CSIQ - look at its weekly chart especially the technical indicators, it is starting to pull down, you can bet the downside chances are higher in the weeks ahead. The next look at the daytrading chart, CSIQ will either go down from this level (middle of the bollinger band) or up to $26 and pullback tomorrow.
Quote from PennyTrader:
Same to LDK, the weekly chart doesn't look good at all, looks like it is forming a lower low and lower high red candle for this week. When a red candle is formed, usually a few more red candles follow it ( a few more down weeks).
But if you look at the daily chart, 200 day/50 day SMA has been a support, it bounces from the levels. $43.5 is the value area (pink line) for the past 6 months.
In general, I believe the solar sector should outperform the general market or other sectors regardless the market up or down in 2008.
LDK weekly:
LDK Daily:
Quote from PennyTrader:
As for QQQQ, look at its monthly chart, certainly more ugly months to follow. It stopped dropping at 200 period MA on the monthly this week.
A red month finish or red candle formation seems inevitable, then, we are looking for three more red candles, $42-43 area is not impossible (50 period MA and trendline).
