BWEN – Trading and Chart Update
Two days ago on Monday, Dec.21, I wrote about one of our featured companies, Broadwind Energy, Inc.:
“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.”
I am pleased to report that Broadwind sold as high as $9.92 late in today’s trading session and closed at $9.85, up $0.45 on the day. Less than two months ago on October 3, Broadwind was trading at $5.00.
Both the RSI and MACD indicators [above and below the chart] are both registering over-bought conditions. However, this two month rise in price has seen only small sell-offs and there is no reason to expect that the stock should back-fill to anything lower than the $9.00 to $9.25 level which I would consider another great buying opportunity.
As I stated on Monday, a break through the $9.15 to $9.40 level is extremely bullish. Based on today’s close at the day’s highs, I expect to see additional strength during tomorrow’s shortened trading session.
