One solar player that's starting to move within range of triggering a near-term breakout trade is First Solar ( FSLR), which designs, manufactures and sells solar electric power modules using a proprietary thin film semiconductor technology. This stock has been in play with the bulls so far in 2013, with shares up sharply by 30%.
If you take a look at the chart for First Solar, you'll notice that this stock has been uptrending modestly over the last month, with shares moving higher from its low of $35.59 to its intraday high of $41.07 a share. During that uptrend, shares of FSLR have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of FSLR back above its 200-day moving average, and it's quickly pushing the stock within range of triggering a near-term breakout trade.Traders should now look for long-biased trades in FSLR if it manages to break out above its 50-day at $42.04 a share and then once it clears its gap down day high from August at $42.25 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average volume of 4.67 million shares. If that breakout hits soon, then FSLR will set up re-fill some of its previous gap down zone that started near $49 a share. Traders can look to buy FSLR off any weakness to anticipate that breakout and simply use a stop that sits right below its 200-day at $38.34 a share, or below more support at $37.50 a share. One can also buy FSLR off strength once it takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
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
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV