This week we look at Energy Conversion Devices (ENER 27.94). The company specializes in commercializing materials, products and production processes for the alternative energy generation, energy storage and IT markets.
General Summary
Since December ENER began to be sold off dramatically, from its once high of $36. ENER also has exposure to the solar industry, which is really popping right now.
Chart Examination
I really like the way this chart set-ups. After dropping for much of January, the stock found support at $22 and broke a minor resistance at $24 and $26. It is now sitting at the breaking point of the 50 day moving average resistance.
Final Outlook
This stock is a great buy after breaking the $28 resistance, which will turn into support. If the stock bounces off the 50 day moving average, then the stock is a buy at the $26 level. The price target is $32, but may need to battle the 200 moving day average. If the momentum holds, then look for the time frame to be a week or two.