Think energy has done well this year? Not when it is compared with solar energy. (April 06, 2015)
I want to look at First Solar ( NASDAQ:FSLR ) here, but first lets step back and look at the ETF. The solar ETF, TAN ( NYSEARCA:TAN) like that, only I don’t think there’s any tanning salons in there.
Anyway, this has been a top performer this year, look at where this has been, I hear all these guys talking about how, “Oils been the strongest performer this year.” Dude, go solar, it’s up 36 percent during this year, that’s a pretty big move. I looked at some of these stocks; they’ve already made some nice moves.
Ultimately this is where I want to go, First Solar ( NASDAQ:FSLR ) is still in a volatility squeeze, the stock has also had a monster move so far this year so it’s been one of the big ones, but it’s already made it’s move. Now what I want to do is I want to start looking for a breakout that will take this to the next leg higher.
So what I would suggest you do is, put an alert at 63.10 and then if the stock hits that level your attention is drawn back to it; you can look at it, if it looks like it’s moving higher from there then you buy it on this breakout and then ride it up as long as you can, but it could move for a while.
Those of you who are Elon Musk fans can look at buying Solar City ( NASDAQ:SCTY ); but this is totally different, I’m not looking at this and saying, “Wow! This is about to breakout, it’s going to move up to $60.00.” This one, First Solar ( NASDAQ:FSLR ), I could say might move up to $70.00. But here, Solar City ( NASDAQ:SCTY ), this has been forming a base for months, and months, and months.
I would just say watch this stock, if you’re long the stock, frankly I don’t know why, unless you’re really, really patient. The stock has support, you could say at $50.00. Well what does that mean, that then if the stock breaks below 50.00 you sell? No, it actually has support clear down here at about 46.00, and it has resistance right up here at about 58.00, so you’re right in the middle of congestion in a stock that’s traded sideways forever.
About the only thing to do on this stock, and it’s a little pricey from a nominal standpoint or a dollar standpoint to do this, but about the only thing to be doing on this is selling puts or writing covered calls, something like that. You can do that here, I just like this idea of watching First Solar ( NASDAQ:FSLR ) for the next leg higher.
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