7 Trade Ideas with First Solar Filling the Gap

Posted by Blain Reinkensmeyer
November 12, 2007 at 12:59 pm

First Solar (FSLR) today is on the downtrend and has begun to fill its gap range from the November 8th jump. The company dedicated to alternative energy has been an extreme high flier in 2007.

FSLR offers seven ways to play, first let’s take a closer look at the chart:

Trade Ideas for FSLR:

Place a limit order to buy half your position at the bottom of the gap range, anything between $174 and $176 should be sufficient. Give the stock a little room to move, 3 - 8% depending on how tight you want to go. Buy 25% more once the stock moves back above $190, and the last 25% with a move back above $200. Look for strong accumulation to confirm strength.
Buy half your position now in today’s current price range of the mid $180s and give the stock some good breathing room, placing a stop at say 8%. Buy the rest on strength, complete your purchasing when the stock recrosses above $200.
Don’t buy at all in these ranges. Let the stock find its bottom before considering a position.
Wait for the stochastics to move back toward neutrality, say around 50 - 60 and see where the stock is at that point in time. Take 50% of a long position at neutrality, give the stock some room say 5 - 8% downside exposure and buy the rest as the stock moves back to the upside. (Note: stochastics not shown on chart)
Wait for the stock to base out again, if at all, and buy into the next break.
Take a small short position and place a 3 - 5% price target with $192 being your exit price if the stock moves back to the upside. For example if you short at $185 look to take profits between $179.45 - $175.75.
Wait for the stock to move back to its 20 day moving average. During the latest leg up this has been the strongest support area. Buy half your position at the 20 dma and look to add to your position appropriately as the stock climbs up. Tight stop of 2 - 4% should be more than sufficient if purchased correctly intra-day. (Note: 20 dma not shown on short)

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Comment by Jorge

2007-11-12 16:02:43

I’d worry about FSLR both from a technical point of view and oil prices retreating. The longer oil trades downward, I would think the less attractive this group gets. Oil’s now under $94. Maybe it’s time to go airline?