Is First Solar Close to Support?

Published on Wednesday, 06 February 2013 06:00 Written by TradersHuddle Wire

New York, February 6th (TradersHuddle.com) - Shares of First Solar, Inc. (NASDAQ:FSLR) ended the trading session close to calculated support at $27.60, a level that will raise the attention of traders looking for an entry point.

First Solar's stock range is defined by its calculated support defined at $27.60 and by the resistance level at $31.99. This range could be used as a reference by traders planning their next move. The area where buyer interest might materialize is defined as calculated support. Stocks trading near support might see upside if it can successfully hold the technical level. However, this area if breached will signal participants that the stock failed to entice buyers to step in to support it.

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 $31.99 might limit their upside, however, if the stock breaks resistance, it could be a good point to add to the position.

Shares of First Solar, Inc. closed at $29.02 in the prior trading session.

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.