After reaching our $140 target a little over a week ago, First Solar ($FSLR) looks poised for another big breakout opportunity – one that could move price over 10 points!
The daily chart shows $FSLR dropped sharply away from the $140 level and is now holding precisely at the monthly pivot range, which spans from $125.65 to $126.03.
The recent three days of trading activity reveal a Rest After Battle candlestick formation, which means price is gearing up for another breakout move, following a period of rest after the first big move. This formation is usually a continuation pattern.
The fact that price is coiling within a very tight two-day trading range, which spans from $124.90 to $127.80, indicates a breakout from this range could spark the next big move in this stock.
Since price is holding at the monthly pivot range, a move away from this range should lead to a test at either R1 resistance or S1 support, $139.70 and $111.75, respectively.
A confirmed close beyond the current two-day range could trigger the next big run in this stock. Watch this range closely.
Let’s see what happens!
Cheers!
Frank Ochoa
PivotBoss.com
Follow Frank on Twitter: http://twitter.com/PivotBoss