Stock Pick For Thursday: Evergreen Solar

All investors dream in finding a stock that could rise three-fold or more and to get long the name before it happens. It’s our dream !! but finding these explosive stocks isn’t always an easy task. It takes a great deal of research to find the right stock in the right industry that is growing fast and has the potential to make such a large move. Recently, I analyzed some solar stocks that made a huge move, including Renesolar (SOL) , Canadian Solar (CSIQ) and LDK Solar (LDK). Now is the time to analyse one that can follow the same way based in the technical chart, it’s name is Evergreen Solar (ESLR).

Chart courtesy of www.stockcharts.com ( click to enlarge )

The technical chart is showing that the stock is on a bounce back rally after 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 rising above 0 also indicating a buy, and KD line shows the stock is on the positive swing. OBV is beginning to turn around which suggests the stock is no longer being sold off. In my opinion, this stock has been undervalued relative to the sector. The growth in the solar sector is now surging like a volcano. Investors who find the gems in this sector have the potential to be awarded with large gains. The stock needs to break 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 its bottom and is awaiting confirmation before breaking out to higher prices.

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.

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Comment by mlgreen8753

2009-09-16 20:01:51

My stock pick is Mentor Capital (MNTR). They have a 1/5 stake in a biotech company with a promising new breast cancer treatmemt on way that could result in stock price gains if the FDA authorized clinical trials are a success.

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