Trading Idea: Is First Solar close to Support?

Published on Monday, 14 January 2013 06:04 Written by TradersHuddle Wire

New York, January 14th (TradersHuddle.com) - Shares of First Solar, Inc. (NASDAQ:FSLR) are trading very close to calculated support at $30.43 with price action closing at just $32.01 and placing the stock near levels where traders will start paying attention.

First Solar's stock range is defined by its calculated support defined at $30.43 and by the resistance level at $35.60, which should be used by traders planning their trades. These support and resistance levels are based on a peaks and troughs algorithm of the stock's price action.

Traders wanting to establish a position should pay close attention to First Solar's price action, and establish it as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $35.60 might limit their upside, however, if the stock breaks resistance, it could be a good point to add to the 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.