Solar stocks keep the momentum
First Solar (FSLR) stock rose more than 8% on April 10 and closed almost at its ten-month high. According to CNBC, Goldman Sachs added First Solar to its “Americas Conviction List” and increased its target price from $64.0 to $75.0. Goldman Sachs maintained a “buy” rating on the stock. SunPower (SPWR) and Sunrun (RUN) rose ~4% and 6%, respectively, on April 10. Increased demand from the utility and commercial markets is expected to be the main driver for First Solar, according to Goldman Sachs.
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First Solar is overbought
Currently, First Solar stock is trading at $60.77, which is ~7% and 15% above its 50-day and 200-day moving average levels, respectively. We highlighted First Solar’s “golden cross” pattern, which indicates a bullish signal in the stock, in First Solar’s Must-Know Indicators and Short Interest. Since then, the stock has risen more than 10%.
First Solar stock is trading in the overbought zone with its RSI at 81. RSI levels at extreme ends imply an impending reversal in the stock’s direction. SunPower and Sunrun are also overbought with their RSI levels at 81 and 72, respectively.
So far, solar stocks (TAN) have shown a decent uptrend this year. First Solar stock has risen more than 40% during this period. SunPower has risen ~56%, while Sunrun has risen 45% year-to-date.