Solar Stock Ripe for Short-Term Bounce

Canadian Solar Inc (NASDAQ:CSIQ) stock is on track for its 10th daily loss in the last 11 sessions, after its May rally lost steam above the $45 level. Down 2.8% at $36.51 at last glance, CSIQ is still up 18.2% year-to-date. There is reason to believe the shares could soon stage a bounce, too, as the solar name has just run into a trendline with historically bullish implications. 

According to Schaeffer's Senior Quantitative Analyst Rocky White, Canadian Solar stock is trading within one standard deviation of its 260-day moving average for the fifth time in the past three years. CSIQ was positive one month later after three of those past four signals, averaging a 6.8% return. 

It's also worth noting that the security's 14-day relative strength index (RSI) of 23.8 sits firmly in "oversold" territory. This is typically indicative of an upcoming bounce in the short term as well. Plus, short interest represents 7.8% of the stock's available float. 

Now looks like a good time to weigh in on CSIQ with options, too, per its Schaeffer's Volatility Index (SVI) of 46%, which ranks in the low 3rd percentile of its 12-month range. This means options traders are pricing in low volatility expectations at the moment.