First Solar (
still hasn't been given the praise it deserves. Despite a
meteoric rally to end the year, analysts remain bearish.
The majority of them rate FSLR a hold. Meanwhile, the average
price target is $23, 35% below the current market price. How are
the shares a hold at $35? Analysts are clearly in denial.
Though the Street missed the boat, ChartWatch readers didn't.
ChartWatch has been a proponent of FSLR since October. In fact, I
pointed out the pennant (blue lines) as
a bullish development
, going so far as to say, "the stock may increase by 50% before
This chart shows the price of
shares along with an important resistance level to
I confirmed this view in a more recent
. At the time, the stock was around $27 and I still expected $34
Only one day into the new year and FSLR has ripped through my
price target. So do I think it has more room left to climb?
The $40 area represents heavy resistance and will be a tough
price to breach. However, the shares appear ready to at least
challenge this zone.
Realistically, $32.50 should support the stock in the near term.
And based on the high volume accumulation activity, bullish
traders should bid FSLR up to $37-$38. However, this stock is
volatile and eventually a larger pullback should ensue, giving
long-term investors a chance to buy at a lower price. I'd view
any pullback as a buying opportunity, with an entry price near
$30 as optimal.
Solar stocks will continue to surprise investors this year and
FSLR is the safest stock within that industry.
Equities mentioned in this article: FSLR, TAN
Positions held in companies mentioned above: