FSLR dominated by bulls lifting the market higher throughout the day
First Solar Inc. (FSLR) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, FSLR ended Thursday at 37.62 gaining $2.83 (8.13%), notably outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 37.14, the share confirmed its breakout through the previous session high after trading up to $0.83 above it intraday.
Daily Candlestick Chart (FSLR as at Mar 26, 2020):
Thursday's trading range has been $2.67 (7.52%), that's below the last trading month's daily average range of $3.43. 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.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 35.82 (now S1), which is likely to act as support going forward. The last time this happened on February 24th, FSLR actually lost -5.16% on the following trading day. Prices are trading close to the key technical resistance level at 39.64 (R1).
Although the stock is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
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. Though it is usually interpreted as bullish, it has actually shown to be bearish for First Solar. Out of 229 times, FSLR closed lower 53.28% 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 54.59% with an average market move of -1.03%.