I mentioned I’d be watching two IPOs today. I thought FACE was going to be the IPO to offer a trading pattern or two, but it was the stock CSIQ – Canadian Solar Inc. instead.
When you trade IPOs online, you always want to know what the security was priced at by the Underwriters. Renaissance Capital is a good place to get some background on the IPO being issued. I found out Canadian Solar was priced at $15. I also read that CSIQ priced at the top of the expected range. This shows demand, which is a positive sign.
The stock opened in the 15’s. I placed an order to buy at $15.35. My stop was immediately set under the offer price of $15. You can see what happened on the chart. The trade was good for up to 3 R if a method of trailing bar stops was used. Remember to pick your targets and plan your trades before buying.
CSIQ also offered another day trading pattern buy after it’s first pullback. The trigger occurs when the stock makes the first higher high after the pullback. Keep those IPOs on the radar. They can be fun to trade.