China-based Solarfun Power Holdings (SOLF: sentiment, chart, options) is bouncing between positive and negative territory today after reporting a mixed bag of earnings news. First up, the photovoltaic-cell maker reported a third-quarter loss of 13 cents per American depositary share, with net revenue totaling $187.8 million. Before provision adjustments, net income was 16 cents per share, exceeding the consensus analyst estimate by 2 cents per share.

However, SOLF's fourth-quarter outlook is rather cautious. Average selling prices fell to $4.04 in the third quarter from $4.17 in the second quarter, and the decline is expected to persist during the intermediate term. Solarfun predicts that average selling prices will drop less than 5% sequentially in the fourth quarter, with prices slipping an additional 5% to 10% in 2009. On the plus side, gross margins are expected to improve during the fourth quarter.

The shares of SOLF opened sharply lower today following the earnings release, but they have since rebounded into positive territory. At last check, the stock was up more than 2%. Today's gains were capped by SOLF's descending 10-week moving average, which has stymied its progress since early September.