Yesterday, FSLR broke the 40 barrier after days of consolidation. I am long 40.5 calls next week. Looking for a few more points to complete the inverse head and shoulders pattern.
I am buying 5,000 shares of First Solar, Inc. (NASDAQ:FSLR). The stock chart is one of the most beautiful bull flag patterns I have seen in some time and on the verge of the break out. The stock is trading just off 52 week lows which means it has significant upside potential. Overall, I view First Solar as a low risk, high reward swing trade.
I verify my trades...
FSLR has broken out of the long downward trend and is now correcting.
Weekly Divergence + .618 key fib level
Daily Resistance zone Level + 1.27 Fib extension of last impulse
4hr divergence.
Contracting wave correction about to finish.
This stock could go lower to the .707, but it is at an interesting point and is worth keeping an eye on. I would...
This price action is heading a crossing starting from 40.50 to 42. At this area, either breakout (above red trend) to around 49 or down to 33. This chart is Weekly.
Solar stocks will probably catch on again in the future so this is one possible scenario... a VERY BULLISH scenario! Throw $10 grand in FSLR at $5 / share, and take early retirement in comfort at your lake house 15 years later =c) ...of course make sure to reinvest at wave (IV) for another 10 fold increase!!!
Solarcity had a bear impulse leg and some sideways movement created a double top and bears are stepping in, looks like the bears are around. Worth keeping an eye on this one. Hope you all have a tested trading strategy to trade this move when it starts
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