$DQ LongWedge breakout with huge call sweeps coming in yesterday
Looking at the 80c 8/20s on a pull back or retest of the breakout
0I74 trade ideas
DQ Will Benefit from Polycrystalline Silicon's Rising PriceThe NYSE-listed company registered for an IPO on the Star Market at the end of May 2021.
● Daqo New Energy's profitability has been relatively unstable over recent years, while its sales have been increasing.
● To improve its competitiveness, the company decided to lower expenses and enhance product quality.
● External opportunities will exert a positive effect on the firm, including rising prices of polycrystalline silicon, increasing global need for solar energy, and other policy benefits.
● Major risks come from lower raw material prices, new energy consumption pressure and conflicts between different government subsidy programs.
The recent downfall of the solar panel sector has aggravated the stock market unnervingly since the beginning of 2021. Some of the solar-related stocks dropped below a 200-day moving average. Daqo New Energy's shares have also been adversely negative, decreasing by approximately 40%.
Daqo New Energy was founded in Xinjiang in 2011. After a nine-year development, the firm completed its 4A project operation, with the total production capacity reaching 70,000 tons. Specifically, the firm specializes in developing and producing polycrystalline silicon, accounting for a 16.5% market share in the production chain of silicon materials.
Outstanding sales volumes NYSE:DQ
As a leading silicon material firm, Daqo New Energy's sales volumes have presented a dramatically increasing trend after establishment. To be precise, the company had the highest YoY growth rate in 2020 for 96.31% while gaining sales volumes of about 74,811 metric tons. Although its revenues have been increasing from 2014, its gross margins were fluctuating. This might be due to its changeful average selling prices (ASPs) affected by the industry.
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Improvement of self-competitiveness
To cope with the intense competition in the polycrystalline silicon industry, this silicon material firm focused on two aspects to enhance its competitiveness. The first demonstrates its cost and price advantage. After setting up, the firm aimed at creating affordable products to offer to its clients. As a result, its average production prices have been in a downward trend since 2014, and eventually lowered to USD 5.85 per kilogram in 2020.
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While decreasing its product prices, the firm still improves its product quality. In detail, Daqo New Energy strictly monitors the process from raw materials procurement to production and delivery, and testing inputs in each stage. By the end of 2020, it owned over 30 process improvement projects to improve its polysilicon manufacturing process. Furthermore, it received ISO 9001:2008 certification for its quality assurance system.
Beneficial opportunities externally
Apart from the above efforts, Daqo New Energy also benefits from three external factors. First of all, The public's growing need for polycrystalline silicon is ever-expanding. Although the domestic proportion increased from 64.1% in the mid-2019 to 81.47% by 2020's same period, there still was 20% left with import volumes, indicating other rooms for domestic alternatives. In other words, the domestic supply was still lower than the domestic need, serving as a boost engine for raising polycrystalline silicon's price. The silicon material firm will also gain profits from this rising price trend.
For the full article with the charts, please visit the original link
Secondly, there is an increasing global need for solar energy. Due to the adverse effects of global warming and COVID-19, solar power appeals as a green investment opportunity for global investors. As a leading raw-material provider within the solar energy industry, Daqo New Energy has been taking the lead in China, in which annual demand for solar energy is expected to exceed 70 GW in the future.
Last but not least, policy benefits swing Daqo into an upper hand position. To complete carbon neutrality before 2060, the National Energy Administration in China is actively promoting photovoltaic power generation this year, which occupies 11% of the whole. Under this situation, China Photovoltaic Industry Association (CPIA) is expecting a dramatic increase in the photovoltaic industry's installed capacity. Specifically, China will install 123 GW by 2025. Silicon materials are important to the upstream of the photovoltaic industry chain, giving Daqo New Energy more room for development.
For the full article with the charts, please visit the original link
One of the top ten leaders in the industry
At a global stage, the company's production was comparatively stable from 2017 to 2020, hovering around the top five and top six among all companies in the world. However, compared with Zhongneng Technology, its production was still lagging behind, indicating more room for development.
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From 2017 to 2020, Daqo New Energy's profitability was comparatively higher while other expenses were lower. For instance, the silicon material firm's operating incomes, gross margin and ROE were higher than Asia Silicon. On the contrary, its period expense ratio and R&D expense ratio were lower than Asia Silicon and Tongwei, separately. Although its R&D expense ratio is in a rising trend, the average in these three years was merely about 1.06%, which still needs to be improved.
For the full article with the charts, please visit the original link
Potential risks
Except for the above factors, the company also has three risks. First of all, lower prices for monocrystal silicon and polycrystalline silicon will hinder its future development. Recently, China's silicon industry's average selling prices have been dropping, moving lower than imported silicon prices. As a result, Daqo New Energy's ASPs were also lower than the current market price.
For the full article with the charts, please visit the original link
Secondly, the company faces pressures from new energy consumption. With the new energy market's rapid development, there still are some issues in new energy consumption. Specifically, abandoning the wild and light, limiting electricity will still be the essential factor to restrict new energy's development.
Thirdly, the risk of taking back subsidies from electricity prices. Due to the more extended period of closing an account, there is always a delay from China's Ministry of Finance's new energy subsidies. This situation will further affect the power generation enterprise's cash flow, harming the actual investment result.
Bottom line
As the photovoltaic industry has been rapidly evolving, Daqo New Energy has caught this headwind and continues to grow. Furthermore, the company's self-improvements have ensured it maintains a good rank globally. Although there still are some risks, they are not likely to severely affect the silicon material firm's business.
$DQ - Recovery Potential In Sightleading manufacturer of high-purity polysilicon for the global solar PV industry.
Founded in 2008, the Company is one of the world’s lowest-cost producers of high-purity polysilicon.
Daqo’s highly efficient and technically advanced manufacturing facility in Xinjiang, China currently has a nameplate annual polysilicon production capacity of 70,000 metric tons.
Recently selloff occurred due to the announcement in Jun. 23:
The U.S. to block some solar products from China's Xinjiang region - Bloomberg
Was it just background noise?
Technically, Potential long entry via breaking and stabilizing above 60.5$
I do not recommend buying or sell DQ Stocks.
Tweezer Tops and why they're reversal indicatorsHey there. Highlighting one of my favorite candlestick patters, Tweezers.
Identifying:
Green bar. Red bar. Approximately same size bodies. Wicks are the same height. Ezpz.
The story:
During an uptrend, everyone is confident prices will continue to rise, so they continue paying more. "Bulls are in control" but really, it's just the average sentiment; prices are going up so everyone wants a piece before it stops. At some point, early entrants take their profits, prices stop rising, and drop a little bit. Some people get nervous and overall confidence drops a little. It retests the price level again, but more people sell so it fails again, and this repeat price-level failure lowers confidence even more. If the price falls back to where this whole thing started, "bears are now in control" but really people have just lost their confidence that price will rise; everyone thinks that the double-tested price level is the max, whereas before they though it would go to the moon. Positive momentum has shifted to negative momentum.
Different time frames
The fun thing is that this story is the same as that of a double-top reversal pattern, because that's what tweezers are: zoomed-out double tops.
Depending on the first bar's open and the second bar's close, it could also be an ascending triangle. So, you don't know if it's going up or down, but you know buyers are more nervous than before the pattern started.
If you were to zoom out from the double top, and then zoom out again from the tweezer top, the whole thing would look like a gravestone doji.
It would have the same open and close with a long upper wick (not the best example picture since this also has a long bottom tail, but hopefully you get the idea). But not every gravestone doji is a double tests, so tweezers tell the story of the markets a little bit better. At the end of the day though, they all say that prices ran up hard, got rejected, and fell back down hard. Not enough for a buy or sell signal, but if you identify a tweezer top, you now know important price levels and can make slightly better decisions about what will happen in the future if it rises above or falls under them.
Good luck!
ABC Bullishpossible stop under C or last pivot low.
DG broke the upper trendline of a symmetrical triangle today.
No recommendation
$DQ - Polysilicon for the global solar PV industry is on the MapEC will be held on May 11.
A shaped lens of the investors will examine the financial Growth indicator.
Technically, above 77$ is still positive for Long.
For long term holders, Keep it up above the trendline below.
I do not recommend buying or sell DQ stocks.
Just an Idea,
$DQ Harmonics Short @ 92, flip long mid mid 70's We shorted $DQ @ 92 after it put in a nice momentum burst to tp 2, from our Bat Pattern , Looking to flip it long in PRZ zone 74 ish area. I Will update, Original post from this weekend is on my twtr account (out of idea shares)
@PETEYboy @USA_Capital_Funds
DQ (Daqo New Energy Corp) - Bullish to end quarter and beyondDaqo New Energy Corp. is engaged in the manufacture and sale of high-quality polysilicon to photovoltaic product manufacturers. The polysilicon is further processed into ingots, wafers, cells and modules for solar power solutions. Daqo New Energy Corp., formerly known as Mega Stand International Limited, is headquartered in Wanzhou, The People's Republic of China.
We see a Bullish end to the quarter pushing into subsequent quarter.
Strong EPS and Sales growth Quarter-on-Quarter
Confirmation on both speeds of MACD and on Heiken Ashi candles
First Target indicated - top can be +$160.
Don't forget to 'LIKE' and comment, thank you.
Good luck, and do your own research
DQ, TIME TO BUY?Hello fellow traders and investors, here's another trade idea.
DQ has recently broken out of the downtrend channel. It's had a nice little rally in the past 3 days, after this large impulsive move I am expecting a small pullback however I do expect it to make a recovery to its highs which offers another 60% ROI from the 80$ price entry I would be aiming form.
Technicals:
The Macd indicates that it's oversold and in an uptrend
The bullish volume is getting exhausted which means we will most likely see a pullback
When To Buy:
Around 80 to 85$
When To Sell:
I recommend selling at its previous high
Fundamentals: DQ is a leading manufacturer of high-purity polysilicon for the global solar PV industry. They have a P/E of 243.43, a P/S of 8.86, a debt/equity of 0.32, sales growth Q/Q of 108.30%, an EPS growth Q/Q of 232.60%, a profit margin of 19.10%, a short float of 11.90% and I do have to warn that this stock has a very high volatility.
Rating: 90/100 if you buy at the 80$ range the technicals look good and so do their fundamentals even tough their valuation is quite high.
I hope you enjoyed this quick analysis and many more to come.
If you enjoyed leave a like, follow, comment your thoughts and share this trade idea.
Thanks.
Is Daqo Ready To Go?Small cap stock in the green energy space. Shovel play. Gapped down and closed higher. bullish divergence in the rsi indicator, and volume shows accumulation through the retracement, indicating strong holders. The volume profile shows that the next nearest consolidation pattern is where "fair price" exists, but we may never see that.
$DQ - wait for the trade to come to youSome large bets are made for DQ in april
Trying to pick up call options while the stock is down.
There may be better entries so patience is a virtue.
Making sure my limit buys are in for at least $3 under the mark.
If it fills then it's a holding game until mid april.
If you can tolerate having the money tied up, it may be a play for you.
If VIX is elevated, then wait it out. Options are more expensive when the VIX is elevated.
DQ Watchlist Feb 1stHit Wave 3
Entering Wave 4
- losing MACD momentum 12 crossing 26
- decrease in volume
Buy Range: $78 - $70
DQ thoughtsjust some thoughts on DQ, hopeful the RSI pulling into the over sold zone will bring a bit of a pull back, but if price continues holding support along the ascending trend line, i see potential for a new high.
$DQ flashed IDEAL ENTRY with 8 confirmations.$DQ flashed IDEAL ENTRY with 8 confirmations.
We're looking for great entries with the potential for a long-uptrend.
Confirmations:
1) green candle
2) crossing yellow EMA
3) crossing blue MA
4) modified golden cross: yellow crossing blue
5) hi volume
Bottom Indicators
6) red line turning green (uptrend sign)
7) green line crossing blue line
8) green/blue both above 0
$DQ with a neutral outlook after earnings release The PEAD projected a neutral outlook for $DQ after a negative over reaction following its earning release placing the stock in Drift C
If you would like to see the Drift for another stock please message us. Also click on the Like Button if this was useful and follow us or join us.
DQ correction for short term profit taking? I've been long on DQ since 140 and I feel like there's a strong chance of a short term price correction to resistance levels of around 200 in the next couple days. Momentum has been ridiculous, fueled mostly by hype, since their earnings are really nothing too special / worthy of their PE. I'm seeing strong bearish divergence on the daily RSI on today's high (see chart). Also, MACD is crossing below the signal on the lower timeframes (4h). I can see myself closing my position, and buying any dip that comes up. What worries me more in terms of medium-term prospects is their consistency in beating EPS estimates, coupled with the boatload of hype investors .Benjamin Graham points out how companies that have a record of beating EPS estimates get their prices dragged through the mud as soon as they falter in meeting those estimates, regardless of any change in intrinsic value. I'm not going to try to predict anything about their Q3, but if they can't keep up their record of beating EPS estimates, this quarter or in the next ones, you can probably expect a sharp pullback. Long term investors shouldn't be too concerned, and maybe buy the (potential) dip if they feel the intrinsic value is still there.
I don't want to seem too pessimistic about DQ, but analysts are getting super bullish on their estimates, raising Q4 EPS estimates by 50% in the last three months. Again, I think DQ is a great company, but I'm not sure these estimates are realistic.
