Credit: Shutterstock photoFirst Solar ( FSLR ) 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 year's end."
This chart shows the price ofFSLRshares along with an important resistance level to monitor.
I confirmed this view in a more recent December article . At the time, the stock was around $27 and I still expected $34 (blue dot).
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? Absolutely.
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: none
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
