Callers offered up various stock names during the Mad Money "Lightning Round" Wednesday evening, including First Solar (FSLR) : "I think you're in great shape with that one. It's moving up," said Jim Cramer.
Let's check out the charts of FSLR.
In this daily bar chart of FSLR, below, we can see that prices gapped higher today to jump above the 50-day and 200-day moving average lines. The On-Balance-Volume (OBV) line is showing a rise from early May and that is telling us that buyers of FSLR are now more aggressive. This is a welcomed sign after the decline from January.
The Moving Average Convergence Divergence (MACD) oscillator is just now crossing above the zero line for a new outright buy signal.
In this weekly Japanese candlestick chart of FSLR, below, we can see an improving technical picture. Lower shadows below $70 can be seen as traders rejected those levels. Prices are testing the 40-week moving average line.
The weekly OBV line shows some improvement from early May. The weekly MACD oscillator has narrowed and is close to a bullish crossover.
In this daily Point and Figure chart of FSLR, below, we can see that prices met and exceeded a price target. The $88-$91 area may provide some chart resistance.
In this weekly Point and Figure chart of FSLR, below, we can see a potential price target in the $110 area.
Bottom line strategy: FSLR has gapped higher today. Sometimes gaps like this can be filled. Sometimes not. I would suggest that traders who want to go long FSLR buy half of their "line" here and then fill out their order if the gap is filled in the next few days. Risk to $75.