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| FSLR Daily Chart (11:15AM) |
The Trade
I would take a 1/3rd position right here around 30 - 30.50 and put a stop around 29.60. As soon as the stochastic turns up I'll be looking to add aggressively. My first target is a test of the recent high (35.60) and if that level does not prove to be significant resistance I would look for a move to 40 and possibly a retest of last year's high (50.20.) The risk (30.50-29.60=.90) and reward at the initial target (35.60-30.50=5.10) are about 3% down and 16% up. That's attractive.
Update: The Stochastics RSI made the move up. I'm taking it as the buy signal and I added this morning. If the stock shows more strength into the close I will likely buy some more.