Pro Charts: Stocks & ETFs

First Solar (FSLR) Into Technical Resistance At Chart Channel Top

Updated: May 25, 2024 | Published: May 25, 2024
Verified Investing
By Verified Investing
First Solar (FSLR) Into Technical Resistance At Chart Channel Top

First Solar, Inc. (FSLR) jumped 41% last week, an epic run for a solar company that has seen demand wane from the residential sector. The demand destruction for the residential sector has been due to higher interest rates. Most that buy solar for their homes, finance it.

The reason for the run in First Solar this past week was an analyst drawing the conclusion that the demand for AI data centers will force a surge in solar installations from companies.

While that may be a little bit of a stretch, it did cause the stock to jump 41% this past week.

Based on pure data and technical analysis, the chart tagged the high end of a channel. The last time this channel trend line was tagged, price declined on First Solar by over 43%, making its way to the low end of the channel. While past performance does not dictate future moves, technical analysis does tell investors there is a strong probability of a pull back in the next few weeks.