First Solar (FSLR.US) shares dropped nearly 2.0% on Monday after J.P. Morgan downgraded the solar panel manufacturer to “neutral” from “overweight.” J.P. Morgan’s analysts expect that recent sharp gains which occurred after the announcement of the Inflation Reduction Act, which provided additional incentives for alternative energy, will slow down in the near future.
“…we view First Solar as the biggest near/medium-term beneficiary from the Inflation Reduction Acts’ domestic manufacturing tax credits,” analyst Mark Strouse wrote in a research note. “However, with the stock up [more than] 120% over the past four months, we believe the ‘easy money’ has now been made.”
Start investing today or test a free demoOpen real account Try demo Download mobile app Download mobile app
First Solar (FSLR.US) stock rose over 15.0% only in November 2022, however buyers struggle to break above key resistance at $175.00, where highs from February 2011 are located. As long as price sits below this level, a larger downward correction may occur. Nearest major support to watch is located at $125.30. On the other hand, if buyers manage to push the price above the aforementioned resistance, then the road towards highs from May 2009 at $207.00 will be left open. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.