First Solar Breaks Five-Year Downtrend as UBS Solar Basket Jumps 40%
FSLR•First Solar rallied past a five-year downtrend line as UBS' solar basket jumped 40% year-to-date, with shares trading around $268. The move is driven by falling yields, policy momentum and expectations of a Section 232 tariff announcement in mid-to-late June with potential minimum import prices and tariffs.
1. Technical Breakout
After more than five years under sustained technical pressure, First Solar shares climbed through a defined downtrend barrier, trading around $268. The gains coincide with a 40% year-to-date rise in the UBS solar basket as investors revisit clean energy names.
2. Tariff Outlook
Market participants anticipate a Section 232 tariff announcement in mid-to-late June that could introduce minimum import pricing alongside tariffs. Domestic manufacturing incentives may be leveraged to offset tariff liabilities, supporting momentum into the policy update.
3. Upcoming Catalysts
Beyond tariff expectations, the next significant catalyst for First Solar will be order commentary on its second-quarter earnings call. Continued yield declines and policy support provide a positive backdrop, while residential solar names face vulnerability if speculative gains fade.
