NFTRH+; a low risk short setup

I am not one to short very often. But I don’t care for Energy and I don’t care for alternative energy either. Not at the moment. This is no recommendation whatsoever because I think that recommending shorts is a mug’s game. But I am a chart nerd and sometimes I like to highlight things I see that look interesting.

I shorted FSLR here at the neckline to a small H&S pattern which, if it breaks down, would target 123. That is probably a breakaway gap way down around 75 and will probably not fill. But if the H&S proves to be real and activates below 145 I’d look for the 125 area in order to cover.

Alternatively, if the trade goes wrong I’ll cover quickly. That would mean a hold here and pop back above the SMA 50. What works best for me – especially when shorting – is to be intolerant. In that way sometimes you get shaken out of a big play but more times (in my experience) you avoid disaster.

Anyway, here’s FSLR daily, showing a nasty looking little pattern that formed within its fully intact uptrend. Of further note is that RSI is trending down after making a significant negatively divergence at the high/head (H). Worth a shot for me, just for speculation.

first solar, fslr

A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the technical parameters are already noted. These updates are meant as a starting point for your further research if interested. I will not personally buy every item highlighted and will sometimes sell (ref. Trade Log) any item that I do buy below target (assuming I’ve not stopped out or sold for some other reason) as I often do. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.