Support and Resistance Example, Canadian Solar (CSIQ)

The following stock chart of Canadian Solar (CSIQ) offers a great example of simple support and resistance. Support and Resistance is a basic form of technical analysis used commonly every day to mark potential buy and sell points on a stock chart.

Note: This chart of Canadian Solar (CSIQ) is a six month daily stock chart:

1. The blue 1 show us how Canadian Solar originally broke through resistance at $47.50 to claim new highs. The stock though a few days later collapsed back into its base, a very bearish sign.

2. The blue 2 shows us how Canadian Solar then trended down and fell below its key $35 support trendline. The stock attempted to rally back above this line and did but the very next day fell back under, another bearish sign.

3. The blue 3 shows how the latest trendline support at $26 a share has been broken. Volume is above average as well which marks another distribution day for CSIQ stock.

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