FSLR pushes through Tuesday's high
First Solar Inc. (FSLR) Technical Analysis Report for Aug 05, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, FSLR ended Wednesday at 65.73 gaining $1.69 (2.64%), notably outperforming the S&P 500 (0.64%). Today's close at 65.73 marks the highest recorded closing price since September 25, 2019. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 64.23, First Solar confirmed its breakout through the prior session high after trading up to $1.51 above it intraday.
Daily Candlestick Chart (FSLR as at Aug 05, 2020):
Wednesday's trading range has been $3.29 (5.2%), that's above the last trading month's daily average range of $2.66. Weekly volatility is also higher, being above 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.
Crossing above the upper Bollinger Band for the first time since July 14th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 60.72 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on July 14th, FSLR actually lost -1.29% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
2019's high at 69.24 is within reach and we might see further upside momentum should the stock manage to break out beyond.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the upper Bollinger Band" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for First Solar. Out of 77 times, FSLR closed lower 57.14% 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 53.25% with an average market move of -0.88%.