Daqo New Energy (DQ) will have another good day today.  Yesterday, the company was initiated at Buy over at Roth capital with a $15 price target and this morning the company is raising Q4 guidance and announcing expansion plans.  They are raising their Q4 shipment guidance from 825 – 850MT to 930 – 950MT and revenue guidance from $65 – $69 million to $75 – $76 million.  The company also announced plans to build its Phase 2 polysilicon production facility which is expected to begin production in Q3 2012.

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Technically, I believe shares of DQ have bottomed out around the $10 level given yesterday’s high volume surge and this morning’s gap up.  The stock is likely to form some kind of cup with handle base, with a proper entry point coming on a break out above a handle formation.  I personally added a small position yesterday morning and will be looking to add to my position on a handle breakout move.