Almost a year ago I recommended a stock by the name of Energy Conversion Devices (ENER). A few months later, the stock price nearly increased by 300%; however, just like most other stocks it eventually came back down to earth.
Fast-foward to 2009 and ENER is almost sitting at the same price when I first recommended it. Could the trend perhaps continue in the first half of 2009? Lets looks at the charts:
Over the last year you can see the bell chart looking path ENER experienced. It basically created a double top before coming back down to earth. Now the stock looks to have hit a pretty substantial support and now in a trading range (which could mean change in trend).
But just how substantial is that support line above? Look below. Over the last 5 years, it looks like the support has played a pretty key role in the movement of ENER. What I like even more is that it played a resistance at one time that caused the stock to test it more than once.
Yes, there is so much upside to this stock. There are numerous price targets. All depending on your time frame, but essentially there could be price targets of $30, $50, and then $75. While I don’t expect it to get all the way back up into the 70′s, there is no reason why we couldn’t see this stock head back up into the $30′s and then $40′s.
Right now the stock sits at a pretty pivotal point. It it falls below the lowest green line, then stay away; otherwise, I would look to pick up shares at $26.