By: Scott Redler
As the market rally continues, traders and investors start looking down the food chain for potential ideas.
Here is the fundamental story. Broadwind Energy, Inc. provides products and services to the wind energy industry primarily in the United States. Its Towers segment manufactures wind towers designed for 2 megawatt and larger wind turbines.
The stock has been hit hard the last 12 months from 12 down to 2.22. Volume has picked up as well as shoring up the stock price as word that the Obama administration has been supporting the re-birth of the wind-energy industry as a viable alternative energy.
Wind turbines and components manufactured domestically has nearly doubled in 3 years from 25-30% to over 50% and wind turbines could generate as much as 20% of Americas electricity over the next 20 years.
On July 6, 2010—Gamesa Technology Corp., a wholly owned U.S. subsidiary of Gamesa Corporación Tecnológica, a global manufacturer of wind turbine generators with headquarters in Spain and operations in the U.S., Europe, China and India has selected Tower Tech, Inc., a subsidiary of Broadwind Energy, Inc. (NASDAQ:BWEN), to supply structural wind towers for wind sites in the United States for installation in the second half of 2010.
TECHINCAL TAKE
The pattern is tight. I see volume accumulation at this lower level. It broke a mini downtrend and now has a perfect Bull Flag. The stock has room as these little guys are becoming the place to be.
Buy Price is 3.40-3.60.
Target one is $4.75-$5.25.
Then target two is $7.
Stop would be 2.80.
Great risk-reward set up. I am long some and if Big Volume comes in and pattern breaks to the upside, I will add.
I attached two charts to take a look