This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

How to Invest in Solar Stocks

Stocks in this article: CSIQ CSUN FSLR JASO JKS SPWR TSL YGE

NEW YORK (TheStreet) -- Investing in the solar-energy sector is risky because the stocks are extremely volatile, but the following analysis of eight companies should provide you with some useful guideposts.

If you already own any of these companies, you can use this information to adjust positions. If you are building positions, consider adding to longs using GTC (good until cancelled) limit orders to buy weakness to a moving average or value levels shown in the table. If you are reducing positions to book profits, consider doing so using GTC limit orders to sell strength to a moving average or risky levels shown in the table.

Canadian Solar (CSIQ)($35.13 vs. $29.82 on Dec. 31, up 17.8% year to date) provides solar modules that power bus-stop lighting, portable home systems and car battery chargers. The stock set a multiyear intraday high at $44.50 on Feb. 28, and then traded as low as $32.09 on March 14.

The weekly chart is negative with its five-week modified moving average at $36.34 in a pattern that appears as a popping parabolic bubble. This week's value level is $32.95 with a monthly risky level at $44.36.

China Sunergy (CSUN) ($5.41 vs. $6.03 on Dec. 31, down 10.3% YTD) provides solar-cell products in China, which explains its weakness given a slowing economy in that country. The stock set a multiyear intraday high at $10.19 on Nov. 6, and then traded as low as $4.77 on Feb. 7. It's now below its 21-day and 50-day simple moving averages at $5.66 and $5.82 and above its 200-day SMA at $4.68.

The weekly chart is negative with its five-week MMA at $5.65 and the 200-week SMA at $5.46. This week's value level is $4.32 with a quarterly pivot at $5.70 and monthly risky level at $8.52.

First Solar (FSLR) ($69.40 vs. $54.64 on Dec. 31, up 27% YTD) makes solar modules to lower the cost of solar electricity. The stock spiked higher by more than 20% on Wednesday to an intraday multiyear high at $70.99.

The weekly chart is positive with the five-week MMA at $57.29. The stock closed a penny above its 200-week SMA at $69.39, the first test of this key moving average since April 2011. My monthly value level is $56.44.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs