I purchased FSLR today at 22.90 and I am using a stop loss at 22.10. The stock has held previous lows consistently during the past couple of month and 22.20 is the most recent low. With the indexes having been in a strong move down it is encouraging that FSLR has held up.
Today, the probabilities are high that the indexes found at least a temporary short-term bottom with 12500 in the DOW 2839 in the NAZ and 1350 in the SPX being important supports. I believe the indexes will stage a rally tomorrow and close in the green and stocks like FSLR in an industry that Obama supports are likely to lead the way to the upside.
I like FSLR for a rally back up to the recent high at 26.31 but keep in mind that if that level of resistance breaks, it is mostly clear sailing up to $50, at least as far as the charts are concerned.
I liquidated 2/3 of my positions in FSLR at 32.49. These are the positions that I put on at 25.28 and at 26.48 (averaged entry point at 25.88). Profit on the Trade of $1331 per 100 shares (2 mentions) minus commissions.
I still have the positions I put on originally at 22.90.
I am looking to re-purchase under $30. How much under $30 I still do not know.
I doubled up on FSLR at 26.48. I am now averaged long at 24.69 (2 mentions).
I am raising my stop loss to 24.90 but will likely be raising my stop loss again after today as this is a breakout (above 26.31) that should not be reverse. I will let you know where I put my new stop loss after tomorrows trading.
A couple of chart comments of interest.
FSLR closed above the 50-week MA, currently at 24.00, on Friday for the first time in 19 months and this week the stock is already trading above last week's high, suggesting that the breakout will be confirmed this Friday with a second close above the line. Such action does suggest that there is definite buying interest from the big boys for this stock.
One more thing of great interest few people have looked at and that is the fact that the stock has now closed in the green on the monthly chart for the past 5 months and if the stock closes above 24.30 on Friday (end of the month) it will be the sixth month in a row of green closes. It does bear mentioning that on the monthly chart there is NO resistance until "minor" resistance is reached at the $50 level. The monthly chart also suggests that if the $50 level is broken that the stock will return to the $100 level before any major selling is seen.
I will be looking to double up on my positions if the stock is able to break above the 8-month high at 26.31.
FSLR has been trading sideways for the past 3 months between 26.31 and 18.57 and more recently between 22.20/22.50 and 26.00 but within that sideways trading some positive chart events have occurred, suggesting the end result will be to the upside.
First of all, the stock closed above the 200-day MA 5 weeks ago and the line has been tested successfully on 3 occasions without negating the breakout suggesting the next step will be to the upside. Secondly, it seems the stock will close above the 50-week MA, currently at 24.90, today for the first time since the last week in May "of last year (2011 - 18-months)". A confirmed break above the line (2 weeks in a row, meaning next Friday as well) would be a second strong clue that the stock is ready to move substantially higher.
It is evident that the stock is at risk of the indexes heading lower if the Fiscal Cliff fears became reality but from purely a chart-point of view, the action seen in the stock is all positive, suggesting a breakout above the high for the past 8 months at 26.31 will occur. What makes it even more interesting is that above 26.31 there is no strong resistance until $50 is reached. Some minor resistance is found at 30.61 but the key word is "minor".
FSLR looks like a strong purchase candidate, at least from a chart perspective.
The DOW is secondary to FSLR's recent decline. The solar sector is down because of lowered guidance at other companies. FSLR has held up well w/in the sector, but until the sector stops bleeding unless FSLR releases some new projects I wouldn't be surprised to see a little more blood in the water.