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First Solar, Inc. Message Board

  • luckyone581 luckyone581 Dec 13, 2012 2:48 PM Flag

    FSLR Chart Comment for Today

    As I mentioned yesterday, the 10-minute chart did suggest the stock would see 32.60 today and the high for today was 32.72. The stock then proceeded to break below yesterday's low at 31.39 with a drop "so far" to 31.31. No support whatsoever is seen in the daily chart until the $30 level is reached but on the 10-minute chart the 200 10-minute MA is currently at 31.00 and the 50 60-minute MA is currently at 30.70. Both of those lines are followed closely by the professional daytraders and will be important to the stock.

    The big problem that FSLR has is that the indexes are likely to be under pressure for now, or until the Democrats and Republicans can start to work together and based on Boehner's statement today that IS NOT happening. Sell pressure in the overall market will pressure all stocks and FSLR is not likely to be immune to that.

    The DOW already broke the 200 10-minute MA convincingly today and the 50 60-minute MA is currently at today's low at 13150. In addition, last week's close was 13155 and if the index closes below that tomorrow the technical traders will turn sellers, meaning that all stocks will see selling. I don't see how the bulls can prevent this from happening right now and I believe that FLSR will also break its intra-day MA and get into some correction

    Support will be found in the $30 demilitarized zone (29.70-30.30) but if the indexes head lower in a meaningful way, FSLR could do the same and if the recent low at 29.29 gets broken, there is nothing to stop the stock from falling down to the $25-$26 area.

    Be aware that the short squeeze has run its initial course and the stock has accomplished a lot without any "backing and filling" or a retest of the breakout level. The stock "has broken out" and that will not change. The stock is now in a bullish mode, but that doesn't mean that a retest of the breakout level cannot happen. Such action would NOT be considered bearish, but chart-wise correct. This market is now in the hands of the technical traders and you need to understand how they think.

    There are "always" lots of possibilities and scenarios but as a traders you have to go with the probabilities and right now the probability is high the stock will drop back down to at least 29.70-30.30.

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