The sun is shining on First Solar

• Posted by Greg Harmon
• on November 23rd, 2015

First Solar ($FSLR) had a rapid rise from the bottom in 2012. By early 2014 it was trading 6 times higher than that low. But since then it has not done much, moving in a broad range around a midpoint at about 55. That happens to be about where it is now.

But as it sits there the short term prospects are looking bright. The latest iteration in the range saw a pullback to 40 and now a rounded bottom in the price and all the SMA’s. Rising out of it, the price broke above falling trend resistance in late October. After a 5 day march higher it pulled back to retest that prior resistance, now acting as support. With a bounce last week it looks like a buy opportunity to at least the top of the range at 64.

The Measured Move takes the stock to 63 and there is now a natural stop at 52.50. Risk $2.50 to make $8, a pretty good reward to risk ratio. The momentum indicators are supporting the continuation to the upside. The RSI is rising and made a Positive RSI Reversal, that targets 63 as well. The MACD is leveling after a fall.

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