First Solar (FSLR) looks very interesting here. This stock has been down drafting on the back of lower energy across the industry group. However, it might be time to think about FSLR above $60. The SCTR is back above 75 so it might have the momentum to break out.
We can see the primary downtrend shown in blue. The two blue support lines look very similar. In 2011, this resolved to the downside. In 2015, we have had 2 tests to the upside that met and stopped at the primary trend line. If price can break out here, I think there is a huge signal for a new primary trend change. Should this fail to hold and end up breaking out to the downside, I think it is better to wait for a new base level to form. The PPO is just above zero and we can see that back in 2011, this was the rejection level when it all broke down. One piece of bullish information is that momentum on the PPO has broken above the downtrend line.
This is a critical point on the chart. I have some other primary trend change signals for energy that I will discuss on today's webinar. You can register by clicking here. The Canadian Technician Webinar 20151124.
Greg Schnell, CMT