First Solar, Inc. (NASDAQ:FSLR) shares are lower Tuesday. But they are trading near a support level.
This could set the stage for a reversal and move higher. It is why First Solar is the Stock of the Day.
As you can see on the chart, the $188 level was resistance for First Solar in July 2025.
The shares were in an uptrend, but it ended when it hit this resistance. When they sold off after, people who sold at the resistance were glad that they did.
But when the resistance broke, some changed their minds. They decided selling was actually a mistake.
A number of them also decided to buy their shares back if they could get them for the same price they were sold for. When the shares dropped back to $188, they placed buy orders and this created support.
When the shares rallied off this support, a number of the people who sold at it decided selling was a mistake. Some also decided to buy their shares back if they could do so at their sale price.
As a result, when First Solar fell back to this level in March they placed buy orders. These orders created support.
When the support broke in September, many of the people who bought shares at it decided their decision to do so was a mistake. They experienced buyer’s remorse and vowed to sell at breakeven if and when they could.
When First Solar rallied back to $188, they placed sell orders. These orders created resistance.
When this resistance was broken, some of the people who sold at it regretted doing so. A number of them decided to repurchase their shares at their sale price.
The stock dropped to $188 on Monday, and these remorseful sellers came into the market as buyers. This created support.
In the financial markets, some price levels are important and some aren’t. The chart of First Solar illustrates this. If a trader can identify these levels, profits will follow.
FSLR Price Action: First Solar shares were down 3.57% at $184.77 at the time of publication Tuesday, according to Benzinga Pro data.
Photo: Rawpixels stock / Shutterstock
