First Solar Shares Show Strength Amid Technical Caution Flags

First Solar shares have demonstrated impressive momentum with four consecutive winning sessions, closing most recently at $272.21—a gain of 4.55 percent. Year-to-date, the stock has advanced a remarkable 45.98 percent. However, beneath this strong performance surface concerning technical indicators and insider selling activity.

Manufacturing Expansion Accelerates

The company’s substantial U.S. manufacturing footprint continues to expand ahead of schedule. Its $1.1 billion Louisiana facility commenced operations in July 2025, earlier than initially projected. This manufacturing center adds 3.5 gigawatts of annual production capacity while creating more than 800 jobs. By 2027, First Solar’s domestic capacity is projected to reach 17.7 gigawatts. Notably, all production relies exclusively on American-sourced materials, eliminating dependence on Chinese supply chains.

Technical Indicators Flash Warning Signals

Despite the stock’s powerful upward trajectory, several technical metrics suggest potential headwinds:

Should investors sell immediately? Or is it worth buying First Solar?

• Recent weekly trading shows daily volatility averaging 5.33 percent
• A pivot-top sell signal emerged approximately fifteen days ago
• The 3-month MACD indicator currently generates a sell recommendation
• Insider sentiment appears negative as executives have been selling shares on the open market

The critical question for investors is whether the current bullish trend can overcome these cautionary signals.

Innovation Progress Meets Macroeconomic Challenges

First Solar continues to advance its thin-film technology portfolio, including developments in CuRe and perovskite applications. Nevertheless, the broader solar industry faces significant tests. Potential tariff uncertainties and elevated interest rates present substantial challenges that could pressure the solar manufacturer’s growth narrative in coming quarters.