NASDAQ:FSLR may be ready to breakout.

A possible breakout setup was detected on FIRST SOLAR INC (NASDAQ:FSLR) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NASDAQ:FSLR.

What is the technical picture of NASDAQ:FSLR telling us.

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

Overall FSLR gets a technical rating of 8 out of 10. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, FSLR is only an average performer.

• Both the short term and long term trends are positive. This is a very positive sign.
• FSLR is part of the Semiconductors & Semiconductor Equipment industry. There are 109 other stocks in this industry. FSLR outperforms 99% of them.
• FSLR is currently trading near its 52 week high, which is a good sign. Certainly because the S&P500 Index is currently trading in the lower part of its 52 week range.
• FSLR is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.
• Looking at the yearly performance, FSLR did better than 99% of all other stocks. However, this overall good ranking is mostly due to the recent strong move.

How do we evaluate the setup for NASDAQ:FSLR?

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NASDAQ:FSLR scores a 8 out of 10:

FSLR has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 135.06. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 131.76, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

How can NASDAQ:FSLR be traded?

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this zone.

Of course, there are many ways to trade or not trade NASDAQ:FSLR and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

More breakout setups can be found in our Breakout analyzer.