At first glance most would probably think that the title of this post is a mistake or a cheap ploy to get page views. The truth is that the charts of Canadian Solar (CSIQ) and gold actually have a lot in common. Compare the monthly chart of gold to the weekly chart of CSIQ and see for yourself:

Click to enlarge

Gold (monthly)

Gold_Monthly

CSIQ (weekly)

CSIQ_Weekly

Gold has been consolidating for more than a year in a consolidation similar to the one CSIQ formed between March and the first week of August of this year. Last week CSIQ decisively broke out to the upside from its multi-month consolidation, a consolidation that could have easily been interpreted as a bearish flag pattern. If gold is to follow suit expect there to be a powerful upside resolution before the end of the year (target of $1650+).