A six-week run in top spot of the SIA S&P 500 Index Report for First Solar (FSLR) has come to an abrupt end. Sentiment has soured significantly after the company reported disappointing earnings and the shares have crashed down into the Yellow Neutral Zone.
First Solar (FSLR) shares have staged a major breakdown over the last few days. Last week, a long-term uptrend for FSLR ended when the shares gapped down under $200.00, took out their 50-day moving average and completed a bearish Rising Wedge pattern with the sudden bearish shift in sentiment confirmed by a volume spike.
FSLR continues to fall, dropping toward $175.00, indicating continuing distribution. Next potential support appears at the 200-day moving average near $156.00, the $150.00 round number, or a previous low near $140.00. Initial resistance appears near $188.25, the highest trading level since the gap.
The technical trend for First Solar (FSLR) has suddenly flipped from positive to negative. In April, the shares completed a bullish triple top breakout and broke out to a new all-time high. This failed after one row, however, a bearish Bull Trap peak. Into May, the shares have fallen off a cliff, dropping back under $200.00, completing a bearish Triple Bottom and extending their decline into a continuing Low Pole.
Based on previous column lows, next potential support may appear near $159.15 and then $144.15, with the $150.00 round number and $152.95 based on a horizontal count in between them. Initial rebound resistance appears near $194.00 based on a 3-box reversal.
With a bearish SMAX score of 5, FSLR is exhibiting weakness against the asset classes.
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