FSLR closes lower for the 2nd day in a row
First Solar Inc. (FSLR) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, FSLR ended the month 20.3% higher at 59.55 after losing $0.15 (-0.25%) today on low volume, significantly underperforming the S&P 500 (0.77%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (FSLR as at Jul 31, 2020):
Friday's trading range has been $1.81 (3.01%), that's below the last trading month's daily average range of $2.73. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for FSLR.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. The last time this happened on July 13th, FSLR actually gained 9.91% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the Hammer and the Last Engulfing Bottom Pattern which are both known as bullish patterns.
Prices are trading close to the key technical resistance level at 59.89 (R1). After having been unable to move lower than 58.51 in the previous session, the stock found buyers again around the same price level today at 58.34.
Though the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
With prices trading close to this year's high at 63.68, upside momentum could speed up should the market be able to break out to new highs for the year.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Bottom Pattern" stand out. Its common bullish interpretation has been confirmed for First Solar. Out of 60 times, FSLR closed higher 61.67% 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 seven trading days, showing a win rate of 56.67% with an average market move of 0.68%.