NEW BULLISH Plays
First Solar, Inc. - FSLR - close: 52.85 change: +1.27
Stop Loss: 49.85
Current Gain/Loss: unopened
Entry on February -- at $--.--
Listed on February 13, 2014
Time Frame: Exit PRIOR to earnings in late February (no date yet)
Average Daily Volume = 3.1 million
New Positions: Yes, see below
Why We Like It:
FSLR is in the technology sector. The company makes solar energy equipment and technology.
The stock has been correcting lower since it peaked in November last year. However, the downward momentum has stalled when shares began hitting their simple and exponential 200-dma(s). More importantly FSLR's current bounce is on the verge of breaking through resistance. Essentially FSLR appear to be reversing higher.
FSLR displayed relative strength today with a +2.4% gain and closed near potential technical resistance at its 50-dma and 100-dma. A breakout higher could spark some short covering. The most recent data listed short interest at 23% of the 72.5 million share float.
I am suggesting a trigger to open bullish positions at $53.75. If triggered our target is $59.75.
Solar energy stocks like FSLR can be volatile so I am suggesting small positions to limit our risk. This could be a short-term trade. Earnings are coming up in the next two or three weeks. There is no date yet but we plan to exit prior to the announcement.
FYI: FSLR is starting to bounce from support on its Point & Figure chart. Currently the chart is still bearish but a move above $53.00 would produce a new buy signal.
Trigger @ 53.75 *small positions*
Suggested Position: buy FSLR stock @ (trigger)
- (or for more adventurous traders, try this option) -
Buy the MAR $55 call (FSLR1422C55) current ask $3.70