First Solar Gap Trade Update, Exit Strategies

For those who decided to play the First Solar (FSLR) gap trade from yesterday, I want to share some exit strategies for your current profits.

FSLR as of 12:19 AM is trading at about $195, up 10.5% with a high on the day of $197 even. Volume is 3.45 million and that is critical as for it to be considered accumulation today the stock has to beat yesterday’s 7.15 million shares traded.

Here is FSLR today (the yellow highlighted bar shows today’s price action thus far):

Refer back to the strategies I posted yesterday, and then read the following exits:

1. From the post, “Place a limit order to buy half your position at the bottom of the gap range, anything between $174 and $176 should be sufficient.” This was your best entry as FSLR bottomed yesterday at $174.22. So now with the stock trading in the high $190s the easiest play is to take your profits here and walk away. Quick profits are better than no profits, especially if you believe this is a simple rebound.
2. If you are going to buy the rest of your FSLR position if it breaks $200 today, make sure to raise that stop loss to lock in profits from buying in the low $180s yesterday. Also, be extremely critical of today’s volume, and if it doesn’t exceed yesterday’s then I would be very tight moving forward.
3. The bottom came at the end of the day yesterday as the gap range was completely filled. Again, taking 11%+ gains and walking away is not a bad play.
4. Keep waiting, neutrality is still on its way.
5. Keep waiting, FSLR could have several weeks or a month+ before a proper base forms.
6. Congratulations, you made quick cash. Your short would have yielded the target 3 - 5% by the end of the day.
7. Keep waiting, that 20 day moving average is climbing fast but might not see action for a while.

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Related Posts From the Past:

• FSLR Move Above $200
• 5 Smart Tips For Trading Part-Time
• Stock Analysis - FXI, MA, FSLR, WM
• 7 Trade Ideas with First Solar Filling the Gap
• RIMM Update

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2007-11-16 15:54:08

[...] those who day traded FSLR and made a quick buck on the last time the stock was mentioned this week, now is a good time to grab some shares and look to hold for atleast several [...]

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