FSLR Trade Set-Up (Management) Follow Up

This is one of several stocks featured last night as a trade set up, letting the trade come to us rather than chasing it,  it's also a trade management as FSLR was entered as a partial position, about half, as I was hoping to fill out the other half at better prices if they became available.

In the last post I covered all of the longer term charts since I haven't updated FSLR in a while as I've been waiting for it to make a move worthy of an update, here's last week's, FSLR Position Management & Trade Set-Up.

The hope was to fill out FSLR, a triangle top, above $74. Since last week's update, very little has changed other than the 5 min chart which is about the right timeframe for the kind of move I'm looking for, as far as the strategic reason I like FSLR short, the post from last week has all of that information.

Here's the updated charts and the Aug. cycle's stop or area I'd want to be short by, or at least enter no lower than this area if you prefer to wait on price confirmation.

 Last week's post discussed (and gave examples) of how these larger multi-month triangles (rather than multi-week) are most often tops or bottoms depending on the preceding trend, in this case a top. These are also very relaiable head fake movers as the price pattern is mistaken by technical traders as a consolidation/continuation price pattern (which it's way too large for), thus technical traders are easy pickings for a head fake bull trap or false break out of the triangle which is where I was hoping to fill out FSLR or if I wasn't in it, start a new position.

 On a daily chart note the large "Crazy Ivan"-like shakeout, this is when both the stops and limits are run, but in this case the stops are run and new shorts are pulled in to a bear trap, which helps give the upside reversal the momentum it needs to pull off a bull trap which FSLR is struggling with as the last 3 days' candles have shown longer upper wicks or a rejection of higher prices.

 The 5 min chart is pretty much where everything is happening so it's not a game changing timeframe other than being the right length for a false breakout and having enough juice to make such a move, however it seems FSLR will need some market or sector support,  although FSLR is up +1.05%, its sub-industry, "Specialized Semi-Conductors" is only up +.17 while the Industry, "Electronics" is up +.29% today... not much in the way of support/help.

The last resistance area/distribution can be seen as well, which is part of the previous 3-days' candles.

 Right now the 2 min chart is struggling a bit, but it hasn't given up, these shorter charts are where we'll see deterioration of the 5 min positive divergence first.

An even closer look with a 1 min chart seems to show profit taking in to today's move, again, perhaps AAPL will be of assistance tomorrow broadly in the Q's and Electronics/Semis.

The Daily Trend Channel has held the entire August cycle and has a current stop of $69, which it will continue to tighten and lock in more upside, so I'm guessing it will be above $70 by the time FSLR has completed this move which is still a fantastic entry,  however just as I said last week, I have my alerts set (which FSLR has been hitting today) above the $74 area which is ideal for a head fake move, ideal for an entry and the lowest risk.

I'd keep this on the radar and maybe set some downside price alerts as well, although I'd like to catch this as an add to > $74, I certainly don't want to miss filling it out above $70 should it not be able to pull off the move.