$FSLR Reports Earnings Tonight. Where is it Headed Tomorrow?

trade-idea

$FSLR is down close to five-percent in early trading that matches the movement of much of the solar sector. $FSLR also reports earnings tonight, which should see the stock post another sharp move when the market opens tomorrow.

The options market sees this move as being for almost $6, and that's an over-10-percent change so trading out-of-the money options will be a big gamble heading into tonight's report. Looking at $FSLR from a chart perspective I think there's a definitive direction that the stock will go post-earnings and it'll be a 20-plus percent move before the stock pauses from its rally.

$FSLR was almost a penny stock not long ago, falling from over $130 per share to less than $12. Since its lows the stock has put in a strong rally and I think the recent consolidation will result in higher prices going forward. Right now, it's has shaped in a nice cup and handle formation. This implies the next move for $FSLR is higher. The next point of resistance will be the recent $59 high, and a break of that price would be terribly bullish for the stock.

I don't think anyone sees $FSLR as a $75-plus stock by early next year, though, but if it does move higher out of this cup and handle I believe a rapid move to $75 could be in the cards. While trading tonight's earnings report via out of-the-money options could be risky, waiting for the premiums to die down early next week and initiating a January call position over $65 could be a very profitable move.

fslr1

Profile photo of uranium-pinto-beansKnown to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

More Posts by UPB: View All | Private Twitter Feed: Access Now! (For Diamond Members)

Leave a Reply