BROADWIND ENERGY Inc – Trading Update

Last month in my update on Broadwind Energy I had suggested that the stock was oversold and also that it would hold in the $5.00 to $5.20 area. As you can see by the chart the stock continued to sell lower and twice traded in the low $4.80 area. However, beginning last Wednesday and through today’s trading session the stock has rallied back through $5.00 and today sold as high as $5.59 before closing at $5.44 for a gain on the day of $0.33. This move is heightened by the fact that today’s volume of just over 1 million shares is the highest daily trading volume in 5 weeks. The stock is closing in on both the 50 day moving average [GREEN] line at $5.75 and the 200 day moving average [BLUE] line at the $5.95 level. It is quite possible we will see a testing of both these resistance levels by week’s end.

This afternoon a J.P. Morgan analyst, Christopher Blansett issued an Overweight rating on the stock and set a price target of $6.50.

It is my opinion reviewing the charts that a penetration of the 200 day MA could see Broadwind trade up to the $9.00 level by the end of the year.

Broadwind Energy Chart