JA Solar (JASO) Gets Microwaved

Posted by barkand on January 20, 2012 under Classic chart patterns | Be the First to Comment

So at this time yesterday, JA Solar (JASO) shares were sitting at $2.11 and it seemed to us there was some constructive price action. We thought JASO would continue up to the $2.30 – $2.40 area.

Well that didn’t take long. Within 30 minutes of the market open, JASO ran up to a high of $2.34. And then….

And then the shares crashed 25% over the next three hours – as did many others in the solar energy sector. After that, JASO limped sideways into the close. But the internal dynamics in the market suggest it was saved by the bell. Prices appeared to be carving out a bear flag (really more of a pennant) as seen below on the 5-minute chart of the past two days.  It sold off a bit into the close and we expect more of the same at the open today.

We are going to relax, make some microwave popcorn, and watch this one from the sidelines.