First Solar has been a volatile stock. When it trends well, it can make incredible runs. However, the stock had been dropping into the fourth quarter. One sign of enthusiasm this week off the lows was that First Solar made a higher low in December than in August, unlike much of the market. The price action this week has moved almost to the top of the October to December range.
With great price action like that, this stock looks ready to shine. There is still a 15% upside just to get to the 40 week moving average, but the overall relative strength shown by the surging SCTR suggests more upside.
With higher highs and higher lows in the market this week, Friday created a follow through day for the markets. Try to find strong stocks with that backdrop. You still need stops and you'll need to give enough room for the high volatility.
Happy New Year!!!!!
Good trading,
Greg Schnell, CMT, MFTA
