All investors dream in finding astock that could rise three-fold or more and to get long the namebefore it happens. It’s our dream !! but finding these explosive stocksisn’t always an easy task. It takes a great deal of research to findthe right stock in the right industry that is growing fast and has thepotential to make such a large move. Recently, I analyzed some solarstocks that made a huge move, including Renesolar ( SOL) , CanadianSolar (CSIQ) and LDK Solar ( LDK ). Now is the time to analyse one thatcan follow the same way based in the technical chart, it’s name isEvergreen Solar (ESLR).
Thetechnical chart is showing that the stock is on a bounce back rallyafter it lost more than 50% of its value since the start of the year.RSI is turning up and is now at 60 levels. MACD indicator is risingabove 0 also indicating a buy, and KD line shows the stock is on thepositive swing. OBV is beginning to turn around which suggests thestock is no longer being sold off. In my opinion, this stock has beenundervalued relative to the sector. The growth in the solar sector isnow surging like a volcano. Investors who find the gems in this sectorhave the potential to be awarded with large gains. The stock needs tobreak Wednesday’s high of $2.54 to expect a strong rally at this point.Evergreen looks very much like an oversold company that has seen itsbottom and is awaiting confirmation before breaking out to higherprices.
Disclaimer : Trading stocks involves risk, this information should not be viewed as trading recommendations.The charts provided here are not meant for investment purposes and only serve as technical examples.
That’s all Folks. See you tomorrow !!!