First Solar, Inc. provides photovoltaic solar energy solutions in the United States and internationally. It operates through two segments, Components and Systems.
Take a look at the 1-year chart of First Solar (NASDAQ: FSLR) below with the added notations:
FSLR had been trading within a sideways, consolidation pattern throughout the summer, but finally broke its $50 support (red) earlier in the month. Once below that mark, $50 should then act as resistance, thus the recent break back above that level should lead to higher prices for FSLR.
The Tale of the Tape: FSLR has broken back above its key level of $50. A long trade could be made on a pullback to $50, with a stop placed below that level. A break back below $50 would be an opportunity to consider a short position instead.
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!
Christian Tharp, CMT