JA Solar Holdings Co. needs to be traded for profit

Aug 26th, 2016 – Comment

Trading in a down channel


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Lou Schizas is an equities analyst, investor, entrepreneur, professor and television and radio personality – and a true believer in the happiness-inspiring powers of capitalism.


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Continuing the deep dive into the solar industry brings JA Holdings Co. (JASO NASDAQ) into focus. The company manufacturers high performance solar products for residential, commercial, and utility scale power generation. They are a vertically integrated concern with eight production facilities.

An audit of the charts will determine the trend, support, and resistance that influence JASO.

 

 

JASO

The three-year chart illustrates the downtrend that has been in place since 2014. However, of the solar stocks I have inspected, JASO has offered greater opportunities to trade for profit along the decline. What is also evident is that the stock is trading in a down channel. A down channel is like a set of railroad tracks one rail providing resistance the other support. The shares have oscillated between support and resistance multiple times over the last two plus years.

In addition the momentum indicators have generated buy and sell signals ahead of the moves up and down.

The MACD and RSI signalled buy in January of 2015 near $7.00, and again in June of 2016 near $6.25. The same indicators signalled sell in March of 2014 near $12.00, and in April of 2015 near $10.75

 

JASO2

The six-month chart highlights the buy signals generated by the MACD and the RSI in June. In addition make note of the resistance that came in near $8.00 in August.

Best way to approach this stock is to look for entry and exit points within the range until there is a trend reversal.

Next time I’ll examine Trina Solar Limited (TSL NYSE).

 

Make it a profitable day and happy capitalism!

Categories: Solar Energy
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