Saturday, May 4, 2013

Elliott wave on First Solar - Follow-up: Are we headed for 70 as the next target?



 Weekly
Daily
4 Hourly
 
 
First Solar
 
Sharad asked me if First Solar is topping and a decline to 26.00 is at hand. My answer to that is, that we could see a decline towards 41.00 and maybe even lower to 35.00, but 26.00 is not on my radar.
 
If we start with the weekly chart we have seen a double zig-zag correction from 330.00, which ended at 12.50 and since the low we have seen a impulsive rally. The five wave rally from the 12.50 low indicates a change in the larger underlying trend and that we should expect much higher levels in the coming weeks/months and maybe years to come.

Looking at the daily chart and 4 hourly charts we can see that we have a five wave rally out of 12.50 and a break above the base-channel, which is the best indication we can get, that wave iii is developing. Yes we might have seen a five wave rally from just below 25.00, but that would only mark wave (i) of iii and during third waves we should expect corrections to be sub-normal. Ideally the former base channel resistance-line, which has now become support will protect the downside, but we must accept a deeper correction towards the bottom of wave four of one lessor degree near 35.00, before the next powerful rally higher towards at least 50.14. and likely 70.00

 

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