Solar companies have been getting media attention lately and First Solar (FSLR) was upgraded today to a buy by TheStreet.com's quantitative service. Add in a fundamental upgrade by J.P. Morgan last week and I need to look at the charts and indicators.
In this daily bar chart of FSLR, below, we can see an uptrend the past twelve months. Prices have stayed above the rising 200-day moving average line since June. FSLR has traded above and below the 50-day line and is current above this rising shorter-term indicator. The volume pattern does not suggest accumulation and the daily On-Balance-Volume (OBV) line has been neutral since December. The Moving Average Convergence Divergence (MACD) oscillator is below the zero line in bearish territory but it looks like this indicator could soon turn positive again.
In this weekly bar chart of FSLR, below, we can see that prices are above the rising 40-week moving average line. The weekly OBV line is positive and the MACD oscillator could turn bullish if prices follow through on the upside.
In this Point and Figure chart of FSLR, below, we can see an extensive base pattern. A rally or trade up to $82.07 will be a fresh breakout.
Bottom line: FSLR may trade sideways a bit longer but further gains are anticipated. Traders could go long above $82 risking to $73. Look for $100 as our first upside price target.