First Solar (NASDAQ: FSLR)

First Solar, Inc. provides solar energy solutions. It operates in two segments, Components and Systems. The Components segment engages in the design, manufacture, and sale of solar modules that convert sunlight into electricity. It primarily serves project developers, system integrators, and operators of renewable energy projects. The Systems segment provides turn-key photovoltaic solar power systems to investor owned utilities, independent power developers and producers, commercial and industrial companies, and other system owners. This segment provides project development; engineering, procurement, and construction; operating and maintenance; and project finance services.

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:



After a strong rally from $25 in April, FSLR has formed a key level at $40 (navy) over the last (4) months, which has been recently been acting as support. In addition, the stock has formed a trendline of resistance (red) starting in the middle of May. These two levels combined had FSLR sandwiched within a common chart pattern known as a descending triangle. At some point, the stock had to break through one of those two levels and earlier this week the $40 support finally broke. The stock should be moving overall lower from here.

The Tale of the Tape: FSLR broke the support of its descending triangle. A short trade could be made on any rallies back up near $40. A break back above the $40 level would negate the forecast for a move lower and should be an opportunity to enter a long trade.
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