On the last update to the FSLR long on Oct 17th, I pointed out that the stock was at resistance and was likely to pullback and/or consolidate and therefore suggested that active traders book the quick 9% gain & look to either add back the position on a pullback or wait until a break above that resistance level for a new long-side entry.
As you can see from the updated chart below (last one), FSLR has done just that, consolidating in about a 15% trading range. That is exactly what this volatile stock needed in order to work off the near-term overbought conditions and build up the energy to make it’s next thrust higher (or lower). Therefore, for those still in the trade or those looking for a new long-side entry, FSLR would trigger a new buy signal on a break above this resistance zone (the 26.00 area). Keep in mind that FSLR could also break the other way so for those longer-term swing traders still in the trade, the suggested stop level remains on a break below the 21.75 area. 4 hour charts on this trade in order as posted below:
