FIRST SOLAR INC (NASDAQ:FSLR) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NASDAQ:FSLR.
Zooming in on the technicals.
ChartMill assigns a Technical Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple technical indicators and properties.
We assign a technical rating of 8 out of 10 to FSLR. 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.
- The long and short term trends are both positive. This is looking good!
- FSLR is one of the better performing stocks in the Semiconductors & Semiconductor Equipment industry, it outperforms 99% of 110 stocks in the same industry.
- FSLR is currently trading near its 52 week high. This is a good sign, definitely because the S&P500 Index is trading in the lower area of its yearly range.
- When comparing the yearly performance of all stocks, we notice that FSLR is one of the better performing stocks in the market, outperforming 99% of all stocks. However, this overall good ranking is mostly due to the recent strong move.
- In the last month FSLR has a been trading in the 124.17 - 140.64 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.
Why is NASDAQ:FSLR a setup?
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:
Besides having an excellent technical rating, FSLR also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 136.63. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 134.5, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for FSLR in the last couple of days, which is a good sign.
Trading breakout setups.
For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the 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.
Every day, new breakout setups can be found on ChartMill in our Breakout analyzer.
