Canadian Solar (CSIQ) has positioned itself for a strong move, which you can see on the chart below. Its recent breakout on strong volume is a great “tell” for what we could see going forward. In fact, now that is has broken the downtrend line, it looks like Canadian Solar has clear skies ahead. Old highs are even in sight! Its latest run began in May on good turnover, and relative strength has been off the charts as well (see the top pane). This breakout could even see this stock headed to the $40’s very quickly. Additionally, Canadian Solar is heavily shorted, and the indicators on the bottom are still flashing a buy signal. We can clearly see the inverse head/shoulders pattern on the chart, which is pointing to a target north of $40 – and I am very bullish on it. We added Aug 29 calls to our Explosive Options trading portfolio.