First Solar Extends Rally 5.26% on Bullish Technical Signals

First Solar (FSLR) gained 3.25% to close at $232.13 on October 2, 2025, extending its winning streak to two consecutive sessions with a cumulative 5.26% advance, reflecting renewed bullish momentum within the broader technical structure.
Candlestick Theory
First Solar’s price action reveals a "bullish engulfing" pattern emerging over the September 30 to October 2 sessions, where the October 2 green candle (open $227.50, close $232.13) fully consumed the prior red candle. This signals strong buying pressure near the $210-$215 support zone, validated by the September 25 hammer candle (low $211.01) that halted declines. Immediate resistance rests at $234–$235, aligning with the October 2 high and the August 18 peak. A sustained close above $235 could signal continuation toward the yearly high of $240.60.
Moving Average Theory
The 50-day SMA (approximately $201) maintains a bullish posture above the 100-day SMA (~$185) and 200-day SMA (~$168), confirming the primary uptrend. Recent price consolidations have respected the 50-day SMA as dynamic support, including the September 25 rebound near this level. The ascending order of these averages—shorter above longer—reinforces the bullish trend structure. First Solar’s current price holding above all three averages suggests robust underlying strength.
MACD & KDJ Indicators
The MACD histogram has turned positive, with the MACD line crossing above its signal line on October 1–2, indicating accelerating upward momentum. Concurrently, the KDJ oscillator shows %K and %D lines rising from oversold territory below 30 in late September to overbought thresholds above 80. This synchronized bullish crossover in both indicators supports the near-term rally but warrants caution if %K exceeds 90, which may precede a pullback. No divergence exists between price and momentum oscillators, reinforcing trend validity.
Bollinger Bands
Bollinger Bands contracted sharply through September (bandwidth narrowing 15%), signaling diminished volatility before the October breakout. The price has since surged to challenge the upper band ($234.50), while the middle band (20-day SMA near $220) now acts as support. This expansion aligns with strong volume, suggesting the move has technical conviction. A close above the upper band may indicate short-term overextension, potentially inviting profit-taking near resistance.
Volume-Price Relationship
Volume surged 5.5% to 2.77 million shares on October 2, confirming the bullish price move. This follows above-average volume during the August 18 rally (9.5 million shares) and May 13 breakout (12 million shares), establishing a pattern of volume validation for key upside moves. Conversely, the September 30 decline occurred on 22% below-average volume, indicating weak bearish conviction. Current volume trends support sustainability, provided turnover remains elevated during advances.
Relative Strength Index (RSI)
The 14-day RSI reading of 68 approaches overbought territory (>70) but lacks bearish divergence, as RSI trends upward with price. This aligns with August peaks where RSI hovered near 75 before mild corrections. While not yet extreme, the RSI suggests near-term consolidation risk if it crosses 70, though its current position allows room for further upside given the trend strength. Historically, oversold readings (<30) in late August preceded significant rallies.
Fibonacci Retracement
Drawing Fibonacci levels from the swing low of $116.56 (April 9, 2025) to the recent peak of $234.01 reveals critical retracement supports. The 38.2% level ($175.29) underpinned the August 18 surge, while the 23.6% level ($195.46) marked consolidation resistance in May and June. Current prices trade above the 61.8% retracement ($155.11), reinforcing bullish dominance. A pullback would likely find support between the 23.6%–38.2% zone ($175–$195), aligning with the 200-day SMA.
Concluding Remarks
Confluence is evident at the $210–$215 support zone, where Bollinger Band floors, the 50-day SMA, and candlestick reversal patterns converge. Additionally, momentum (MACD/KDJ), volume, and trend alignment (moving averages) unanimously validate the bullish bias. However, Bollinger Band proximity and RSI near overbought levels advise against aggressive entry. The absence of bearish divergences and sustained closes above $235 would strengthen continuation prospects, while a break below $220 would signal weakness.