First Solar Inc. (FSLR) soared higher Wednesday as traders rapidly bid up shares of the solar company after upside full-year earnings and strong revenue guidance. FSLR made new 52-week highs and is knocking on the big round number of $200 per share.
Let's check and see what the charts may hold next.
In the daily bar chart of FSLR, below, I can see that FSLR is in an upward trend. The shares trade above the rising 50-day moving average line after testing the line often in the past month. The slope of the slower-to-react 200-day moving average line is bullish.
The On-Balance-Volume (OBV) line has been mostly positive the past year. The Moving Average Convergence Divergence (MACD) oscillator is turning up from the zero line for a fresh outright buy signal.
In the weekly Japanese candlestick chart of FSLR, below, I can see a new(ish) uptrend after a long sideways consolidation pattern. Prices are above the rising 40-week moving average line.
The weekly OBV line has been confirming the rally the past three years. The MACD oscillator is above the zero line and ready to turn upwards to a new outright buy signal.
In this daily Point and Figure chart of FSLR, below, I can see a nearby price target in the $202 area.
In this second Point and Figure chart of FSLR, below, I used weekly price data. Here the software is projecting a longer-term price target in the $273 area.
Bottom-line strategy: I have higher price targets on FSLR so I want to recommend the long side of the stock but the "trick" is where and when to go long. After Wednesday's strong upside burst of strength we are likely to see a sideways to lower trading pattern for a week or maybe ten days. Aggressive traders should be patient and wait for this pullback to run its course before going long.
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