First Solar Inc. (FSLR) is your Trade of the Week
Recent volatility continues to remind us we need good risk/reward type of setups to withstand the market’s “noise” right now. Earnings season also remains in full force and many companies are reporting good earnings only to see the stock price tumble; suggesting the good numbers were already baked in to the price going into earnings. For these reasons we continue to point the technology of Trade Ideas towards oversold opportunities that have had recent earnings and scared out the weak hands.
First Solar Inc. (FSLR) fits this profile when looking for stocks that are oversold in their 20 day range. FSLR recently reported earnings and the weak hands seem to be washed out just above the Suggested Swing stop of technical support. Since we are near those levels of support on a technical basis, we can allow for the volatile testing of this level with a liberal stop well below and a lot of upside opportunity should there be a bounce and resumption of the current trend.
The Trade of the Week is to buy FSLR anywhere above the current support of 65.07 on Monday. The suggested stop is 63.07 and the suggested profit target will be 78.00. So the risk /reward ratio is high when using an oversold entry such as this. The people who originally bought the breakout at 78.00 just may be the ones selling you their stock come Monday morning.