first solar inc us fslr bearish reaction off triangle range resistance 1751032015

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Key elements

• Since the high of 12 September 2014, First Solar Inc has continued to evolve within a year-long “Symmetrical Triangle” range configuration.
• Yesterday’s price action has reacted off the upper boundary (resistance) of the “Symmetrical Triangle” at 59.67 with a bearish candlestick accompanied by a jump in volume.
• The daily (medium-term) RSI oscillator that measures price momentum has started to inch down from its extreme overbought level which suggests that recent upside momentum of the rally seen from the 28 September 2015 low has started to dissipate.
• The key supports are at 52.15/49.40 (gap  & the 27 October 2015 swing low area) follow by 40.75 (lower boundary of the “Symmetrical Triangle” & 76.4 Fibonacci projection from 24 April 2015 high to 28 September 2015 low projected from 06 November 2015 high)

Key levels (1 to 3 months)

Pivot (key resistance): 59.67

Support: 52.15/49.40 & 40.75

Next resistance: 73.60

Conclusion

Technical elements have turned negative for First Solar. As long as the 59.67 pivotal resistance is not surpassed, First Solar is likely to see a further potential downside movement targeting 52.15/49.40 before the lower boundary of the “Symmetrical Triangle” range configuration at 40.75.

On the other hand, a clearance above the 59.67 pivotal resistance may invalidate the bearish scenario for a push up to retest the horizontal resistance joining the highs of 08 April to 12 September 2015 at 73.60.

Source:  Charts are from eSignal

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