Back in the spring, it must have felt like investors couldn't pay people to take solar stocks off their hands. But now the industry is making a conspicuous rebound -- and
(FSLR - Get Report) is leading it off.
Despite the fact that shares of this $2 billion solar stock have doubled since the start of June, there's additional upside in this stock right now. Here's why.
>>4 Tech Stocks to Trade (or Not)
At first glance, it looks like the rally in this stock is flattening out. In reality, though, First Solar is forming an ascending triangle pattern right now, a continuation pattern that points to higher levels for shares of FSLR. The triangle is formed by a horizontal resistance level at $26 and uptrending support that's been connecting the swing lows in FSLR since the start of September. Essentially, as FSLR bounces in between those two technical price levels, it's getting squeezed closer to a breakout above that $26 resistance level. When it happens, we've got a strong buy signal on our hands again.
over the course of this pattern helps to make it a textbook example of the ascending triangle. Ideally, we'll want to see volume spike on the break above $26 -- that means buyers are participating in the move.
It's tempting, but don't be early on this trade. Wait for the breakout before putting your money on the line, then keep a
just below the
50-day moving average
Check Out Our Best Services for Investors
Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts