Monday night during his Mad Money program host Jim Cramer dove into solar plays for his loyal viewers. With environmental social governance activists putting pressure on companies to address climate change, and a failing electric grid creating more and more prolonged power outages, the demand for solar energy is only getting bigger. Cramer offered up his list of the best ways to invest in the sector.
First on Cramer's list was First Solar (FSLR) , which has avoided tariffs by making it's proprietary panels right here in the U.S. With the company's 2021 production sold out, along with most of its 2022 production as well, Cramer said First Solar is a buy, even trading at 21 times earnings.
Let's see how the charts look this morning.
In our last review on June 28 we wrote that "Aggressive traders could go long FSLR at current levels risking to $74 for now. The $100 area and then the $120 area are our price targets."
In the daily bar chart of FSLR, below, we can see that the shares have been steady to higher since our June 28 review. Prices are above the rising 200-day moving average line and the rising 50-day moving average line.
The On-Balance-Volume (OBV) line continues to rise from its May low telling us that buyers of FSLR are more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line in a bullish alignment.
In the weekly Japanese candlestick chart of FSLR, below, we can see a positive picture. Prices are moving up and are trading above the rising 40-week moving average line so the math says we are in an uptrend.
The OBV line shows strength the past eight weeks or so and that is a plus. The MACD oscillator is crossing to the upside and moving above the zero line -- a cover shorts buy signal and an outright buy signal at nearly the same time.
In this daily Point and Figure chart of FSLR, below, we can see that the software is projecting the $112 area as a potential upside price target.
In this weekly Point and Figure chart of FSLR, below, we can see that the $129 area is a possible price target based on the X's and O's.
Bottom-line strategy: FSLR and the indicators tell us to stay with our previous long recommendations. Raise stop protection to $80 from $74. Our price objectives are $100 and then $112 and after that $129.