Jinko Solar Holding Co Ltd. has offered multiple trading opportunities since 2014

Aug 31st, 2016 – Comment

Watch for the outcome of the fossil fuel producers meeting in late September. Solar energy shines when hydrocarbon prices are high.


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JKS LOGO

Today the solar energy stock that we will be looking at is Jinko Solar Holding Co. Ltd. (JKS NYSE). The company boasts a vertically integrated solar products value chain and global customers. JKS employes 15,00o and operates five production facilities in China, Malaysia, Portugal, and South Africa.

An audit of the charts will tell us most of what we need to know about this stock.

 

JKS

The three-year chart indicates that JKS is operating under an established downtrend line that got its start in 2014 when the shares were trading close to $38.00. The stock has offered multiple trading opportunities over the course of the retreat. The MACD and the RSI generated sell signals in September of 2014 which would have served investors well if they had recognized the pattern. A sharp decline followed taking the shares to $16.00 by January of 2015.

The momentum indicators generated buy signals as JKS bounced off $16.00 and ran to a high near $32.00 by June of 2015. Consequently over the next six months the shares retreated to below $16.00 and rebounded to resistance near $30.00 by December of 2015.

The first eight months of 2016 have not been generous to investors as the stock pulled back to $18.00.

 

JKS2

The six-month chart highlights the buying opportunity that surfaced in April when the shares were trading near $19.00 and the sell signal that came into focus by the end of the month. At the moment there are no indications that we can expect JKS to start a new up leg.

The best way to approach this stock is to monitor it for profitable entry and exit points. This is not a candidate for a buy and hold strategy.

Next time I will take a break from this survey of solar energy stocks and  inspect the case for Teva Pharmaceutical Industries Ltd. ( TEVA NYSE) for Sheila.

Make it a profitable day and happy capitalism!

Categories: Solar Energy
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