BWEN – Trading Chart Update
In my comments on Broadwind Energy last Thursday, December 24th., I wrote:
“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 you can see by the chart, Broadwind did respond to an overbought condition and sold off today, trading as low as $8.71 before closing at $8.77.
Although I had suggested a possible retracing to the $9.00 level I am somewhat surprised that the stock would sell as low as it did today. However, after the huge gains made in the last two months, a sell-off should be viewed as normal and representing a renewed buying opportunity.
I do warn that as the stock closed near the lows of the day this selling may persist through tomorrow and perhaps Wednesday and I do believe any further downward pressure will meet great buying support in the $8.25 to $8.50 levels. I once more heartily suggest these levels present a tremendous buying opportunity before Broadwind resumes the upward trend begun on November 3.
