Monday, March 19 was a wretched day for the markets and an even worse day for the technology sector. With Facebook leading the way (down), the Nasdaq dropped nearly 2% on very high turnover – a strong sign of institutional selling. The carnage left very little to pick through, but First Solar looked mighty impressive.
The stock shot higher and was up nearly all day before finishing near the day’s high. While that was an impressive move, I like the W on the chart even more. Since the beginning of the year, First Solar carved out a nice bottom and tested it. Now it’s moving toward new highs. This impressive run is backed by a steep RSI slope and a MACD buy signal. Money flow is not bullish yet, but it may get there by the end of the week.
When the market decides it wants to rally again, buyers will look for names like First Solar as a sign of strength. I like this chart and look for this to make a run towards 80 before too long.
First Solar (Nasdaq: FSLR)
Take a deeper dive into the chart action on First Solar and learn how to read the technicals.