First Solar, Inc. (NASDAQ: FSLR)

First Solar, Inc. engages in the design, manufacture, and sale of solar modules using a thin-film semiconductor technology in the United States and internationally. The company is also involved in the design, construction, and sale of photovoltaic solar power systems. Its solar modules employ a thin layer of semiconductor material to convert sunlight into electricity. The company’s integrated solar power systems activities include project development; engineering, procurement, and construction services; operating and maintenance services; and project finance. First Solar, Inc. sells its solar modules to solar power system project developers, system integrators, and operators; investor owned utilities; independent power developers and producers, commercial and industrial companies, and other system owners.

To review First Solar’s stock, please take a look at the 1-year chart of FSLR (First Solar, Inc.) below with my added notations:

1-year chart of FSLR (First Solar, Inc.)

FSLR imploded in February and fell from a high of $50 down to a June low of $12. Since then, the stock has been slowly trending higher (blue). From the end of August until mid-November FLSR has created a $26 resistance level (navy). Last week the stock finally broke through that $26 resistance and did it on a nice increase in volume (red). As the saying goes, “Volume adds validity”.

The Tale of the Tape: FSLR broke through its $26 resistance last week. A long trade could be made on a pullback to $26 with a stop placed below that level.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!

Christian Tharp, CMT