First Solar Is Close to Resistance

Published on Wednesday, 20 June 2012 06:00 Written by TradersHuddle Wire

New York, June 20th (TradersHuddle.com) - Shares of First Solar, Inc. (NASDAQ:FSLR) are trading very close to calculated resistance at $15.43. The stock ended the trading session at just $15.23, which is near levels that make it difficult to buy or start a position.

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 stock range is defined by its calculated support defined at $12.29 and by the resistance level at $15.43; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.

Traders don't have a clear entry point for First Solar. However, as the stock pulls back towards $12.29 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $15.43 then traders will get an opportunity to enter the stock as it moves to a higher range.