First Solar Close to Resistance

Published on Monday, 06 February 2012 06:28 Written by Christopher Lynn

New York, February 6th (TradersHuddle.com) - Shares of First Solar, Inc. (NASDAQ:FSLR) are trading very close to calculated resistance at $47.10 with the current price action closing at just $45.16 placing the stock near levels that make it difficult to buy.

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.

First Solar's current stock range is defined by current calculated support defined at $36.33 and by the resistance level at $47.10, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for First Solar, as the stock is well above support, however, as the stock pulls back towards $36.33 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $47.10 then traders will get an opportunity to enter First Solar stock by establishing a position as the stock moves to a higher range.