One interesting stock to keep your eye on today is First Solar, Inc. (NASDAQ:FSLR), which broke over a long-term downtrend line in October 2013 and has been moving sideways, but slowly inching upwards nonetheless.
Today's market action in this stock is going to be important because if it closes towards the highs of the day, somewhere around $64.00 as of this writing, a Japanese candlestick "morning star" formation will be created. This can be a strong indication of a reversal to the upside.
This stock has also made a double bottom at $60.75 and again at $62.58. On both the monthly and weekly charts, the RSI level remains above 50, indicating that the longer term uptrend is still intact. This coincides with the monthly Trade Triangle, which remains green and positive.
Conservatively you may want to just wait until the green weekly Trade Triangle kicks in. This will confirm that the intermediate-term trend is now inline with the positive trend of the monthly green Trade Triangle.
Another way to play the stock is to wait for the daily RSI to cross into the +50 zone. This could also be an indication of momentum to the upside.
Should First Solar, Inc. (NASDAQ:FSLR) close today at or close to its highs, it would confirm the "morning star" setup.
My initial upside target zone for this stock is $100. Should you decide to trade in the stock of First Solar, you should, of course, use money management stops. You can read more about protecting your capital and money management here.
I have a feeling this is going to be an interesting week.
Every success with MarketClub,
Adam Hewison
President, INO.com
Co-Creator, MarketClub
