First Solar Is Dipping Below Support
Published on Tuesday, 29 January 2013 05:52 Written by TradersHuddle Wire
New York, January 29th (TradersHuddle.com) - Shares of First Solar, Inc. (NASDAQ:FSLR) closed the trading session at $29.7 below calculated support at $29.93. The stock broke down technically, raising concerns as the move might trigger additional selling.
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 was trading in a well defined range with support at $29.93 and resistance at $31.99; given that this range was broken traders will be closely monitoring the stock's price action for clues of direction.
From a technical perspective, it can be expected that previous support becomes resistance, as the new range gets defined. However, $29.93 will remain in focus as First Solar's price action places the stock near the broken support. Traders will be waiting to see if it can bounce back and return to its previous range.
Traders wanting to establish a short position in First Solar can do so if the stock breaks the intraday low, or if the stock bounces back and selling materializes again at previous support of $29.93. However, if traders want to build a long position, the best entry point to do so is when the price action takes the stock back to calculated support.