FSLR Update

As the market continues to range around from 8/14 to present this morning, the 1 min charts are largely in line, everything in intraday timeframes beyond that is as it was Friday, so not much has changed on that front since last night's update, once a.m. trade (and a Monday at that) starts to burn off, things will become more clear as the morning trade is typically reserved for taking money from retail players who typically have another job and have placed a multitude of limit/stop/etc. orders before they head off to work.

FSLR has a nice "looking" breakout, but I'm slightly less impressed with the immediate implications of it and more impressed with the longer term implications of FSLR. There are long equity as well as calls (Oct.) in play so again I'll be looking to make a decision as to whether to take profits in FSLR or let it stay in place as it is a longer expiration.

The charts...

 This is where FSLR is really impressive, the longer charts which are the more important, 30+ min.

The base in price is clear, I'd guess at least half way complete if not more and the 3C positive divergence running through it is substantial, that doesn't mean it's ready to fulfill its possibilities/probabilities, although there can still be significant gains even within this area, the calls right now are in the double digits, but moving around quite a bit.

 This 5 min chart's smaller negative divergences appears to me to be a price pattern under construction rather than any true distribution.

 Similar to MCP, a small triangle Friday saw late day accumulation and led to this morning's breakout of the price pattern.

However when viewed this way, it looks like this morning's move is part of building a larger triangle price pattern, that's my gut feeling based on the charts and where the base is.

The 60 min chart shows the extent of the positive divergence within the base area and also that the base is past the half way point, with these types of bases, the right side develops much faster than the left as most of the accumulation is done by the time the lows of the base are in place. Any consolidation patterns after this point are more tactical to align a breakout in the stock with a breakout in the market, it's much easier for the stock to move higher when the market is doing the same, it's like water passing through a narrow hose which is more constrictive vs. a wide diameter hose which is more free-flowing.

My guess is that FSLR is building a consolidation/holding pattern until the market catches up, although I do like FSLR as a stock that can stand on its own feet as well, I'm just judging this more from the perspective of the maturity of the base.