Chart of the Day: First Solar - Chart patterns and fundamentals

First Solar cut its 2011 sales and earnings forecast for the second time in two months and forecast 2012 profits below Wall Street's view, sending its shares tumbling 20 percent in premarket trading... yet for months the chart forewarned that lower prices were forthcoming. The consolidation  that began in 11/2008 (w.a) through 6/2011 (w.b) best fits a triangular pattern that occurs prior to the final wave in a wave sequence. As such, triangles can be found in waves B, X or wave 4 positions.

An elliotician would not have gotten too excited on 12/7/2011 when the company reported that they sold specific assets to Berkshire Hathaway. The stock spiked $5.78  ( refer to a daily price chart, not shown) before closing up a meager $1.88. I do know what Warren Buffet's strategy is for solar assets but judging from this chart, there may be more risk to the downside for this company and the industry as a whole before making a meaningful low.

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