First Solar Setting for a Break Out?

Published on Tuesday, 31 August 2010 07:24 Written by TradersHuddle Staff

New York, August 31st (TradersHuddle.com) - Shares of First Solar, Inc. (NASDAQ:FSLR) closed the trading session at $126.28 near its 50 day and 200 day moving averages currently set at $127.32 and $123.11 respectively. First Solar's price action is above the 200 day moving average but below its 50 day moving average, signaling a possible break out.

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 price action seems to be setting up for a tight range between the 200 day moving average as support and the 50 day moving average serving as resistance.

A tiered approach to enter the stock, appears to be the best way to maximize possible movements from the stock, as traders could enter First Solar with a small position and wait for the stock to break out above the 50 day moving average at $127.32, where traders could add to their position as momentum builds with the breakout. The flip side will be if support being referenced at the 200 day moving average set at $123.11 breaks it could mean further downside in the horizon for First Solar.