Broadwind Energy – Trading Update
“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.”
Well, I have been wrong before and my ability to correctly predict when Broadwind would bottom out was off by a whopping $1.30, when on Jan. 6 the stock traded at an intraday low of $6.95. Today’s trading was positive when the stock traded as high as $7.68 before closing at $7.43, up $0.38 for the day on volume of 301,000 shares. As you can see by the chart the stock has retraced almost 60% of the November 3rd., to end of December 100% gains. Both the RSI and MACD indicators [above and below the chart] are bullish and I believe a healthy consolidation in the $7.00 to $7.50 range bodes well for the stock prior to retesting the first resistance at $8.55.
