First Solar Close to Resistance

Published on Thursday, 02 September 2010 07:12 Written by TradersHuddle Staff

New York, September 2nd (TradersHuddle.com) - Shares of First Solar, Inc. (NASDAQ:FSLR) are trading very close to calculated resistance at $130.47 with the current price action closing at just $130.17 placing the stock near levels that make it difficult to buy.

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 current stock range is defined by current calculated support defined at $122.48 and by the resistance level at $130.47, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for First Solar, as the stock is well above support, however, as the stock pulls back towards $122.48 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $130.47 then traders will get an opportunity to enter First Solar stock by establishing a position as the stock moves to a higher range.