June 13, 2009 - Thinking about trading First Solar, Inc. (FSLR) stock or investing for the long term? I have been thinking about it myself now that the stock as come down from a double topped high of around $205-$207 in May 2009.From a technical point of view, you can see that First Solar recently broke support of around $160. This prompted another quick move down to $150. I originally thought $150 would hold but as the Dow Jones and overall stock market started falling, oil prices did so as well. When you have both of these things falling at once, traders tend to go after the solar stocks for a bear raid.
I'm thinking $140 could be the area where I will buy FSLR stock. But here is the trick, a trick that has been working for a long time with many stocks such as First Solar. I want to buy FSLR either for the long term or just a trade when the stock CLOSES over the 10 day moving average (blue line ). FSLR has not closed over this level in a month and the longer a stock such as First Solar stays below the 10 day, the bigger the move higher when it actually does.
My First Solar Trading Plan:
Buy half of the position on the first close over the 10 day moving average, if it fails to hold several days after, buy the other half on the next close over the 10 day moving average.
This is what I plan to do!!
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