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Searching for ways to find stocks that could outperform? Some people look at the new high list. Some people subscribe to newsletters or web-based services. Some set up various filters and screens. I try to keep things simple and look for the upgrades and downgrades on TheStreet'sQuant Ratings service.

First Solar, Inc. (FSLR) - Get First Solar, Inc. Report was upgraded by The Street's Quant service today and that was my starting point. Because I have a technical bent, I turned to the charts and indicators. Of course it wouldn't hurt to see what fundamental analysts are saying about it, too.

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In this daily bar chart of FSLR, above, we can see that prices made a saucer-like base pattern the past eight to nine months. The On-Balance-Volume (OBV) line followed prices lower to April and then turned higher to confirm the rally. The slope of the 50-day moving average line turned positive by mid-April and the line turned above the 200-day line in June for a bullish golden cross.

The Moving Average Convergence Divergence (MACD) oscillator gave a cover shorts buy signal in early April and an outright go long signal when it crossed above the zero line in early May.

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In this weekly bar chart of FSLR, above, we can see how prices reversed to an uptrend after a long decline. FSLR is now trading above the rising 40-week moving average line. The weekly OBV line has turned up in the past three months and the weekly MACD oscillator has signaled an outright buy, too.

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This Point and Figure chart of FSLR, above, shows the reversal for the stock and the recent strength. A potential upside price target of $62 is shown as well.

Bottom line: Having more than one approach agree on a security is added confidence. The quantitative upgrade today and a positive daily and weekly chart suggest that FSLR is headed higher. In the short-run I would expect some sideways consolidation for FSLR before renewed gains. Aggressive traders could approach from the long side risking below $40. My targets are in the $55-$60 area.

(This article originally appeared at 2:00 pm ET on Real Money, our premium site for active traders. Click here to get great columns like this from Bruce Kamich, Jim Cramer and other writers even earlier in the trading day.)

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