First Solar (FSLR) Falling Wedge

Or maybe a symmetrical triangle.I lean bearish here for one simple reason. The solar industry has been support by heavy government subsidies in Europe, Asia and North America. Sovereign debt crises in Europe and the U.S. (the states have massive deficits and public pension shortfalls) means there will be no money for these types of subsidies for the next few years. As Barron's points out in Don't Get Burned by First Solar:
Among risks is the possibility Germany will make further cuts to a solar subsidy that has helped make the country the dominant market for solar power. About 75% of First Solar sales in 2008 were to German customers. As more consumers and businesses install solar panels, the so-called feed-in tariff is becoming increasingly costly for the government and German businesses.
Germany may need that cash for a bailout of Greece.

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