Technically, Solar Opposites: First Solar (FSLR) & GT Solar (SOLR)

First Solar (FSLR) and GT Solar (SOLR) are what I’d call solar opposites, technically speaking.  One appears headed for a retest of the lows while the other appears ready to break out and continue moving higher.

First Solar (FSLR) reported great earnings last night but it was their cautious outlook that sent the stock into the cellar today.  I really thought that it would recover quickly off the morning gap down, but it just couldn’t get going and nearly ended at the lows of the day with record sell volume.  Clearly, institutions were dumping FSLR en masse today and that’s going to put pressure on the stock for at least several weeks. 

FSLR was one of my top green stock picks several weeks ago and I still like it long term, but it’s in a bit of trouble here and could very well test the absolute lows around 85 before this move lower is all said and done.   I mentioned in my last report FSLR would offer another entry if it broke out off the 50 day moving average line in blue on the chart below.  It didn’t do that and offered the first sell signal on February 17th when it took out that key support level.

Look for FSLR to test 100 within a couple days and if it can’t hold that level, a test of 85 is likely. 


On the other hand, GT Solar (SOLR) looks set to head in the opposite direction if FSLR doesn’t drag down the entire sector with it.  This is a company with outstanding fundamentals as well and technically it remains in much better shape as it continues to trade above its 50 day moving average.  The amount of buy volume coming into this over the past several months indicate institutions are showing some interest down here.  If it breaks out of this current pennant formation above 4.75 or so, I may trade it for awhile. 


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