Is First Solar Breaking Out?

Published on Friday, 04 January 2013 05:48 Written by TradersHuddle Wire

New York, January 4th (TradersHuddle.com) - Shares of First Solar, Inc. (NASDAQ:FSLR) closed the session at $34.41 just above calculated resistance at $33.38. The stock effectively broke out and grasped the attention of momentum traders, which could eventually push the stock to a different trading range.

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 stock was trading in a well defined range with support at $29.48 and resistance at $33.38. Given that this range was broken, traders will be closely monitoring First Solar's price action to gather clues on the future direction.

From a technical perspective, it can be expected that previous resistance becomes support, as the new range gets defined. However, given that First Solar is still near the broken resistance level, traders will be focusing on the $33.38 level to see if the stock holds the breakout without rolling over.