First Solar Approaching its 50 Day

Published on Wednesday, 25 January 2012 20:04 Written by TradersHuddle Staff

New York, January 25th (TradersHuddle.com) - Shares of First Solar, Inc. (NASDAQ:FSLR) closed the trading session at $38.61 near its 50 day moving average currently set at $39.91. First Solar's price action is below this important level, which makes the stock difficult to buy, as there will certainly be resistance as it approaches its 50 day.

First Solar, Inc. (NASDAQ:FSLR) designs and manufactures solar modules. The Company uses a thin film semiconductor technology to manufacture electricity-producing solar modules. First Solar is the largest manufcturer of thin film solar modules in the world.

Latest price action range, defined by a peaks and troughs algorithm places calculated support at $36.33 and calculated resistance at $44.16. These levels will be closely watched by traders, as they provide great insight into the latest price dynamics defined by First Solar shares.

Traders should evaluate their trade if they want to establish a position on First Solar given the resistance expected as the stock approaches the 50 day moving average. A trade might materialize as the stock manages to break this important level, as it could be used as support going forward, however until the break materializes buying the stock is nothing different than flipping a coin. Other levels that traders will be evaluating are the ones defined by the peak and troughs algorithm that provides great price level reference points.