Broadwind Energy – Chart Analysis Update

As you can see by the Broadwind Energy chart, the stock price has risen rapidly from $5.00 at the beginning of November to today’s price at $9.00.
Although this steep rise in a short period of time would normally cause me to expect a retracing of the recent gains and perhaps a pullback to the $7.75 to $8.00 level, I am very much intrigued by a longer term view on the chart. A line drawn from September 2, 2008 at $18.50 to touch the July 7, 2009 top at $12.49 and continued down to today’s date creates a long term [18 month] line of resistance at the $9.15 to $9.40 levels.
I will monitor the trading activity very closely to see if these levels are tested and to see if this presents further resistance. If, as I expect, we trade up through this long term resistance I expect a strong run up in price to the $11.50 to $12.50 levels we saw this past summer.
Based on the recent price increases and consistent volumes, I would view any small retracing of the recent gains as a huge buying opportunity.