Trading Idea: - Is First Solar close to Resistance?

Published on Tuesday, 07 August 2012 05:56 Written by TradersHuddle Wire

New York, August 7th (TradersHuddle.com) - Shares of First Solar, Inc. (NASDAQ:FSLR) are trading very close to calculated resistance at $19.12. The stock ended the trading session at just $19.06, 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 $13.81 and by the resistance level at $19.12; 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 $13.81 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $19.12 then traders will get an opportunity to enter the stock as it moves to a higher range.