A Clean Energy trade idea

• Posted by Greg Harmon
• on June 8th, 2015

When you think of clean energy you used to think of Natural Gas. Now it is Solar or Wind Power, or maybe even Geo-thermal energy. What most are not thinking when they hear that phrase is Clean Energy Fuels Corporation ($CLNE), but they should. Clean Energy is building a natural gas refueling infrastructure across the country.

That is all fine and good but what about the stock price? The chart below shows part of its long fall from a high near 25 in early 2012. But since making a double bottom in January ti has been moving higher. It built a Cup and Handle pattern, with the handle pulling back to the limit to retain the pattern. This pattern calls for a move higher to 16.80. But that is not the only good news in the chart.

There is also a Measured Move higher to about 13. And did you notice that there is a Golden Cross that printed, with the 50 day SMA crossing up through the 200 day SMA, also a bullish sign. The momentum indicators are turning bullish as well. The RSI held in the bullish zone on the pullback and the MACD is about to cross positive.

The stock has nearly 245 short interest so another leg higher could certainly trigger short covering and possibly a short squeeze. Using the low on the pullback at 7.22 as a stop, this stock gives a good reward to risk for your portfolio, with a company looking to do good for the environment.

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