FSLR closes lower for the 2nd day in a row
First Solar Inc. (FSLR) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, FSLR finished the week 10.41% higher at 43.47 after losing $0.29 (-0.66%) today on low volume, underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing below Thursday's low at 43.51, the market confirmed its breakout through the previous session low after trading up to $0.34 below it intraday.
Daily Candlestick Chart (FSLR as at May 22, 2020):
Friday's trading range has been $0.79 (1.8%), that's far below the last trading month's daily average range of $1.92. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for FSLR.
Despite a strong opening the share closed below the prior day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on April 16th, FSLR actually gained 5.11% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
Prices are trading close to the key technical support level at 42.40 (S1).
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the nearby swing high at 45.03 where further buy stops might get triggered. Trading close to March's high at 46.22 we could see further upside momentum if potential buy stops at the level get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for First Solar. Out of 85 times, FSLR closed higher 57.65% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after three trading days, showing a win rate of 49.41% with an average market move of 0.29%.