Just Another Bear Market Rally for First Solar?

 | May 03, 2017 | 3:55 PM EDT
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fslr

First Solar (FSLR) rallied sharply today but that may be the beginning and the end of the move. FSLR has made a number of rallies during its long decline. All of these rallies failed at lower highs and today's advance may be no different.

Let's see if the sun is shining on the charts and indicators.

In this daily chart of FSLR, below, we can see an upside price gap and heavy volume as prices jumped above the declining 50-day moving average line and rallied to test the declining 200-day moving average line. Rather than trading on the highs of the day, FSLR is now around the middle of the day's high/low range. The On-Balance-Volume (OBV) has crept up modestly in the past month and the Moving Average Convergence Divergence (MACD) oscillator generated a cover shorts buy signal and is back to the zero line now.

In this weekly chart of FSLR, below, we can see that the longer-term 40-week moving average line is still pointed down. The weekly OBV line has moved much and the weekly MACD oscillator may only be giving us a cover shorts buy signal as it is well below the zero line.

In this Point and Figure chart of FSLR, below, we can see the rapid run up in prices. FSLR reached its $32.15 price target. 

Bottom line - for now it looks like FSLR has made another bear market rally.

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