NEW BULLISH Plays
First Solar, Inc. - FSLR - close: 45.76 change: +2.01
Stop Loss: 43.90
Current Gain/Loss: unopened
Entry on October -- at $--.--
Listed on October 16, 2013
Time Frame: Exit PRIOR to earnings in very late October (or early Nov.)
Average Daily Volume = 4.5 million
New Positions: Yes, see below
Why We Like It:
FSLR is a solar energy company. They make components and design systems.
After a run summer many of the solar energy names have produced a comeback. Shares of FSLR plunged in early August following a disappointing earnings report and cautious guidance. The stock has rebounded back to this key level at the top of the gap down. Shares have resistance in the $45.80-46.00 area.
A breakout here could spark some short covering. The most recent data listed short interest at 21% of the 70.7 million share float. I am suggesting a trigger to open bullish positions at $46.05. If triggered our target is $54.00 but we may exit earlier to avoid holding over FSLR's earnings report expected around the end of October or early November.
FYI: The Point & Figure chart for FSLR is bullish with a $54.00 target.
NOTE: FSLR can be a volatile stock. I am suggesting small positions to limit our risk.
Trigger @ 46.05 *small positions*
Suggested Position: buy FSLR stock @ (trigger)
- (or for more adventurous traders, try this option) -
Buy the NOV $50 call (FSLR1316K50) current ask $2.24