Should Investors Buy Clean Energy (CLNE) on Recent Weakness?
Tweet
Share
E-mailGet Alerts CLNE Hot Sheet
Up)Join SI Premium – FREE
Clean Energy (Nasdaq: CLNE) shares are seeing some dramatic downside Wednesday, but might investors be seeing this as a buying signal...
Natural gas is still trading just above $2 per mmBtu, half the level it was last July. With crude and gasoline prices continuing to rise, many parcel and trucking companies are making a concerted effort to change. As an example, Clean Energy CEO Andrew Littlefair spoke with Jim Cramer just a few weeks ago, noting the cost to covert a truck was halved from about a year down to just six or seven months.
Shares of Clean Energy have been a strong performer in 2012, up 88 percent as of Tuesday's close.
Two technical notes: Clean Energy shares pulled back from $21 to $18 recently, rebounding to $24 over the next several sessions. Also, looking at a 60-session chart at 60 minutes, the 50-day, 2-standard deviation lower-bound Bollinger hadn't been crossed since the start of 2012, but this morning's move lower pushed Clean Energy below that support.
Volume this afternoon is well above 3 million shares, better than the 2-3 million average seen during a typical trading session.
Shares are off about 8 percent on the session. Investors would do well to keep Clean Energy on their watch list for any signs of movement or flattening at $21 to $20. An activity point may also be as low as $18 if shares keep falling.
Peers Westport (Nasdaq: WPRT) and Fuel Systems (Nasdaq: FSYS) are only down about 5 percent Tuesday, a possible signal to a Clean Energy-specific issue.
Natural gas is still trading just above $2 per mmBtu, half the level it was last July. With crude and gasoline prices continuing to rise, many parcel and trucking companies are making a concerted effort to change. As an example, Clean Energy CEO Andrew Littlefair spoke with Jim Cramer just a few weeks ago, noting the cost to covert a truck was halved from about a year down to just six or seven months.
Shares of Clean Energy have been a strong performer in 2012, up 88 percent as of Tuesday's close.
Two technical notes: Clean Energy shares pulled back from $21 to $18 recently, rebounding to $24 over the next several sessions. Also, looking at a 60-session chart at 60 minutes, the 50-day, 2-standard deviation lower-bound Bollinger hadn't been crossed since the start of 2012, but this morning's move lower pushed Clean Energy below that support.
Volume this afternoon is well above 3 million shares, better than the 2-3 million average seen during a typical trading session.
Shares are off about 8 percent on the session. Investors would do well to keep Clean Energy on their watch list for any signs of movement or flattening at $21 to $20. An activity point may also be as low as $18 if shares keep falling.
Peers Westport (Nasdaq: WPRT) and Fuel Systems (Nasdaq: FSYS) are only down about 5 percent Tuesday, a possible signal to a Clean Energy-specific issue.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Risks including rising dollar, bond yields and concentration problematic for stocks: JPM
- NVIDIA (NVDA) closes 10% down, wipes off over $210B in market value
- Oil prices jump over 3%, near $90 on reports of explosions in Iran
Create E-mail Alert Related Categories
Insiders' Blog, Trader TalkRelated Entities
Jim Cramer, Crude OilSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
