Is First Solar Expecting Resistance Soon?

Published on Wednesday, 10 October 2012 06:04 Written by TradersHuddle Wire

New York, October 10th (TradersHuddle.com) - First Solar, Inc. (NASDAQ:FSLR) ended the trading session at $20.80, near its 50 day moving average set at $21.42. First Solar's price action placed the stock below this important level, which makes it difficult to be bought, as the stock will certainly face resistance as it approaches its 50 day moving average.

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.

The latest price action range, defined by a peaks and troughs algorithm, placed calculated support at $19.68 and resistance at $23.39. These levels will be closely monitored, as they provide great insight into the latest price dynamics.

If traders want to establish a position in First Solar, given the resistance expected as the stock approaches its 50 day moving average, a trade might materialize as the stock manages to break this important technical level. After the breakout, the 50 day moving average could be used as support going forward. However, until the break materializes, buying the stock is basically a gamble with 50-50 chance.