Lights Out For Canadian Solar

em>Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Canadian Solar CSIQ shares are trading sharply lower by $4.33 at $20.36 in Wednesday's session. The catalyst for the route is the weak forecast announced by the company after reporting a strong Q2 beat for EPS ($0.31 vs. Est. $0.13) on higher revenues ($636.7M vs. Est. $592.50M). Off the initial positive Q2 headline, the issue popped from Tuesday's close ($24.69) just above Tuesday's high ($25) to $25.30 before reversing course in a big way. By the open, the issue has shed $4.50 to $21.50 area, which turned out to be resistance as it peaked at $21.63 and continued its steep decline. So far, the decline has taken the issue to $19.54,which is still above the yearly low of $18.68. The current intraday low coincides with its January 30 ($19.60). Since reaching that depressed level, its has climbed back into the $20 handle, reaching $20.53 and pausing. Today's price action is taking place on much heavier than average volume. With less than fours remaining, it has traded 9.4M shares compared to its 20 day average of 2.33M.