Stock Technical Analysis: Waiting for ENER to Break Resistance
Written by Lawrence on September 23, 2009
Here’s our technical take on a recent request: ENER. Energy Conversion Devices (ENER) is a specialized semiconductor stock with presence in the solar energy space. The stock has been on a steep downtrend since peaking last Aug at about $80. On Sep 4, ENER hit a low of $10 before skyrocketing upwards on extremely heavy volume on Sep 8. Since then, the stock has been hovering above the 20-day and 50-day SMA in the $12 to $14 price zone. In the short term, ENER appears to be consolidating its recent gains and offers little edge to the bulls or bears. However, since the stock has undergone a severe year-long correction, the edge seems to be slanted to the bears. It would be advisable to wait for a significant price move above the immediate resistance at about $15.70 before making a bullish bet. A decisive move about $15.70 would establish the first “higher high” in recent price action (the previous high being at $15.70 in mid-July).
In short: avoid ENER until a decisive move above $15.70 resistance.
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