FSLR closes below its opening price unable to hold early session gains
First Solar Inc. (FSLR) Technical Analysis Report for Jul 13, 2020 | by Techniquant Editorial Team
FSLR ended Monday at 56.21 losing $1.28 (-2.23%), notably underperforming the S&P 500 (-0.94%). Trading $1.70 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on July 2nd, FSLR actually gained 7.08% on the following trading day. Closing below Friday's low at 56.34, the stock confirmed its breakout through the previous session low after trading up to $0.23 below it intraday.
Daily Candlestick Chart (FSLR as at Jul 13, 2020):
Monday's trading range has been $3.50 (6.04%), that's far above the last trading month's daily average range of $2.14. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for FSLR.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar.
Unable to break through the key technical resistance level at 59.57 (R1), the market closed below it after spiking up to 59.61 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. First Solar found buyers again today around 56.11 for the third trading day in a row after having found demand at 56.34 in the prior session and at 55.90 two days ago.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 51.78.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
With prices trading close to this year's high at 59.90, upside momentum could accelerate should FSLR be able to break out to new highs for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous two Lows" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for First Solar. Out of 119 times, FSLR closed lower 63.87% 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 52.94% with an average market move of 0.51%.