FSLR closes below its opening price unable to hold early session gains
First Solar Inc. (FSLR) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
FSLR ended the month 6.18% higher at 49.50 after edging lower $0.11 (-0.22%) today on high volume, significantly underperforming the S&P 500 (1.54%). Trading $0.65 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (FSLR as at Jun 30, 2020):
Tuesday's trading range has been $1.37 (2.76%), that's below the last trading month's daily average range of $1.86. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for FSLR. Prices continued to consolidate within a tight trading range between 48.30 and 50.42 where it has been caught now for the last three trading days.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on June 16th, FSLR lost -2.75% on the following trading day.
Prices are trading close to the key technical support level at 48.30 (S1). The share was sold again around 50.34 after having seen highs at 50.11, 50.42 and 50.42 in the last three trading sessions. Obviously there is something going on at that level.
First Solar shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might accelerate should prices move below the close-by swing low at 48.30 where further sell stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior three Highs" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for First Solar. Out of 17 times, FSLR closed higher 70.59% 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 10 trading days, showing a win rate of 58.82% with an average market move of 3.86%.