Broadwind Energy: The Wind Is Kicking Up
Dragonfly Capital | Jun 12, 2014 01:36AM ET
Alternative energy has been a hot place to invest. And volatile. Solar has gone through a lot of ups and downs. But wind power has been left behind. at least in the stock market. That may be ready to change though. Broadwind Energy (NASDAQ:BWEN) is starting to look attractive. It has been a long time since anyone could say that. Take a look at the weekly chart below. You would be hard pressed to find a more ugly chart. This stock dropped from a high of $290 to an ultimate low at $1.70, over 99.4%. And it has basically done nothing for 3 years since getting there.
But lets zoom in on that last bit of chart. Since the low at 1.70 it has been steadily rising and crossing SMA’s. The latest was a cross of the 200 week SMA in March. The bull case for more upside gets more weight from a Golden Cross, with the 50 week SMA crossing up through the 200 week SMA just last week. The series of higher highs and higher lows has been continuing for 18 months now and it is holding at support of the 20 week SMA. Stocks generally retrace at least parts of long trends. And if this stock only retraces 23.6% of the move down, the first Fibonacci ratio, it would target a move to 68. DO I have your attention now? Sure it has been a dog stock and maybe it retraces the bounce move first back to 1.70. But that is what a stop loss is for. An entry here or over the previous high even at 13.80, would have plenty of upward potential. And a stop a few cents under the 20 week SMA keeps the losses light. I bought some yesterday to get started.
Disclaimer: The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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