Diary of a Financier

First Solar Turns Long-Term Bullish

In Capital Markets on Fri 10 Dec 2010 at 12:08
  • FSLR finally a long-term outperform.
  • Buying FSLR slowly until 2011 outlook call on 12/14 & breach of $140 H&S resistance.

Finally, after a year of oscillating between $100-150 bounds, First Solar (FSLR) is prepared for an assault on its long-term resistance, a triple top around $150.

FSLR Weekly Chart

It has taken its time to regroup after a mediocre earnings call on 10/28, exactly as expected in my 11/2 tweet.  I’ve traded this range with striking success since 2009, but despite my expectation of this regrouping, I missed my entry point and the stock has taken off in the past week.

Nevertheless, I’m scaling into it, building my stake a few blocks at a time, particularly since the 2011 outlook will be announced on 12/14/2010, and there are short-term headwinds in the price action: namely, a Head & Shoulders first resistance at $140. 

–Romeo

Advertisements
  1. Update: Solar stocks rally after Senate negotiators approve one year extension of tax grants to US wind and solar companies.
    http://www.sfgate.com/cgi-bin/blogs/nov05election/detail?entry_id=78785

Comment

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s