This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

First Solar Developing a Bullish Move

This article originally appeared Sept. 6, 2013, on Real Money. To read more content like this, + see inside Jim Cramer's multi-million dollar portfolio for FREE Click Here NOW.

First Solar ( FSLR), headquartered in Tempe, Ariz., is a manufacturer of thin film photovoltaic modules, or solar panels. It also provides PV power plants and supporting services that include finance, construction, maintenance and panel recycling. The company is quite popular among traders and investors alike. It trends very well with smooth fluctuations in the larger trading channels, and it has a reputation for explosive moves with entry triggers that appear at relatively reasonable price points.

Shares of First Solar have fallen in and out of favor quite often in recent months. After soaring in April to establish a third wave of buying on the weekly time frame, the shares began to pull back and correct over the summer months. Slowing momentum into May's highs helped fuel that corrective move. By the end of June, First Solar had given back about 50% of the gains it had made during the second-quarter rally.

Shareholders' disappointment continued as the correction unfolded. The strong price support at the midsummer lows resulted in a rally into July, but the momentum of that upside was still more gradual as a whole than the prior drop. This eventually led to a second major pullback on the weekly time frame throughout August.
FSLR Weekly

It may seem as though First Solar would be one of the last places one would watch for re-emerging strength, but the opposite is true. Two-wave corrective moves such as the correction this summer will often find support when the second wave has a measured move compared with the first -- in other words, a 100% Fibonacci expansion. First Solar hit this support zone on Tuesday, and it did so as the momentum of the selloff slowed. This type of momentum shift is one of the first signs I watch for when timing a reversal on the basis of this form of two-wave correction.
FSLR Daily

Another indicator that I watch for a reversal of a correction is a decline in trading volume as the correction occurs. Declining volume will often represent a lack of motivated sellers within the pullback, even when the price move is quite large.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Our Tweets

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs