An under-$10 name in the semiconductor space that's starting to break out today is China Sunergy (CSUN), which manufactures its solar cells from silicon wafers utilizing crystalline silicon solar cell technology to convert sunlight directly into electricity through a process known as the photovoltaic effect. This stock has been blazing a trail to the upside in 2012, with shares up over 85%.
If you take a look at the chart for China Sunergy, you'll see that this is another stock that was stuck in a nasty downtrend for the past six months. Shares of CSUN dove from its September high of $4.56 to a recent low of $1.04 a share. After hitting that low, the stock has rebounded sharply on monster upside volume towards its current price of around $2.70 a share.
Market players should now look for more upside in CSUN with the stock triggering a breakout trade above some near-term overhead resistance at $2.50 a share. At last check, CSUN has taken that level out easily intraday and the volume has already hit 215,000 shares. The three-month average volume for CSUN is 68,652 shares. Traders should now watch for a sustained high-volume move and close over $2.50 to signal that CSUN wants to rip much higher.One could be a buyer of CSUN off any weakness as long as it continues to trend above the breakout level of $2.50 a share. If that $2.50 level holds, and you happen to get long, then I would target a run back towards its next significant overhead resistance levels at $3 to $3.60 a share, or possibly its 200-day moving average at $4.20 a share. China Sunergy shows up on a recent list of 10 Stocks Under $5 Outperforming in 2012.
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