First up is First Solar (FSLR), one of the most well-known names in the solar business -- and as a result, one of the stocks that's gotten hit the hardest as solar technology lost its allure on Wall Street. FSLR should be a familiar name to regular readers of this column -- we took a look at this stock a couple of weeks ago.
Now, though, with the technical setup in shares further along, it's worth a second look.
First Solar is currently forming an ascending triangle setup, a pattern formed by horizontal resistance to the upside and uptrending support below shares. As shares bounce between those two technical price levels, they're getting squeezed closer and closer to a breakout above resistance. For FSLR, the buy signal comes when shares push through that $26 resistance level.The last time we looked at this stock, it had only made contact with $26 resistance a couple of times, but now, it's hit its head on that level a couple more; that indicates that there's still selling pressure up at $26. Even so, shares are consolidating right underneath that level right now, so a breakout may not be far off. When it happens, I'd recommend buying with a protective stop just underneath the 50-day moving average.
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