Yahoo Finance

Key Takeaways

• First Solar shares jumped 15% on Wednesday, leading a broader rally for clean energy stocks, amid investor optimism about the sector in the wake of the previous night's presidential debate between Kamala Harris and Donald Trump.

• Wednesday’s jump from a saucer pattern's neckline occurred on the highest share turnover since late June and saw the price close above the closely-watched 50-day moving average, indicating conviction behind the buying.

• Investors should watch important overhead price levels at $235, $265, and $300, while monitoring key support around $215 during retracements.

First Solar (FSLR) shares soared on Wednesday, leading a broader rally for clean energy stocks, amid investor optimism about the sector in the wake of the previous night's presidential debate between Kamala Harris and Donald Trump.

During the debate, Trump said Harris would “go back to solar,” if she wins the presidency, adding that he’s “a big fan of solar.” While Harris didn’t address solar energy during the debate specifically, she has been a proponent of the Biden Administration’s Inflation Reduction Act, which includes tax credits for rooftop solar and other clean energy initiatives.

Growing optimism towards solar stocks comes at a welcome time for First Solar, which has seen its shares track mostly sideways over the past 18 months as elevated interest rates have weighed on demand, making it more expensive to finance and install solar panels and related energy products.

Below, we’ll take a closer look at First Solar’s chart and use technical analysis to point out important price levels that investors should watch out for.

Saucer Pattern's Neckline Providing Support

First Solar shares broke out from a saucer in late May on above-average volume before topping out in mid June.

However, since that time, the stock retraced as much as 36% but has found support around the pattern’s neckline.

More recently, Wednesday’s jump from this important technical area occurred on the highest share turnover since late June and saw the price close above the closely-watched 50-day moving average, indicating conviction behind the buying. The stock rose 15% Wednesday to close at $239.84.

Overhead Price Levels to Watch

Looking ahead, investors should keep their eyes peeled on three key overhead price levels.

The first sits at $235. Although the stock closed slightly above this level on Wednesday, sellers could still seek exit points around a trendline that connects a range of narrow consolidation between early July and late August.