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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