Solar Soars Again: Is A Pull Back Looming?
Solar stocks are staging another huge rally today. First Solar, Inc.(NASDAQ:FSLR) is trading at $51.65, +2.31 (4.68%). This stock was trading at $11.43 less than a year ago. Almost all other solar stocks are surging today. SolarCity Corp(NASDAQ:SCTY) is trading at $36.85, +7.97 (27.60%).
This massive move in solar stocks is a continued short squeeze. Once the shorts have all covered, the buying pressure will subside and the stocks will pull back. However, the pull back will be limited to a retrace of this big up move. With First Solar, the pull back is at hand. This move over $50.00 will trigger a final surge from short covering. We are seeing that today and it may briefly continue tomorrow morning. Following that move, expect a pull back to around the $35.00 - $40.00 level.