FSLR closes above its opening price after recovering from early selling pressure
First Solar Inc. (FSLR) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
FSLR finished the week 5.34% higher at 55.26 after gaining $0.65 (1.19%) today on low volume, notably outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $0.48 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (FSLR as at Feb 14, 2020):
Friday's trading range has been $1.01 (1.84%), that's below the last trading month's daily average range of $1.35. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for FSLR.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
The market managed to close back above the 100-day moving average at 54.94. When this moving average was crossed above the last time on Wednesday, FSLR actually lost -2.69% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the close-by swing high at 56.17 where further buy stops could get triggered. Selling might speed up should prices move below the nearby swing low at 53.71 where further sell stops could get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for First Solar. Out of 232 times, FSLR closed lower 52.59% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 53.45% with an average market move of -0.67%.