Back on March 11th, yours truly opined that the wild bullishness that had carried names like ZBB Energy Corporation (NYSEMKT:ZBB), Plug Power Inc. (NASDAQ:PLUG), FuelCell Energy Inc. (NASDAQ:FCEL), and Ballard Power Systems Inc. (NASDAQ:BLDP) to triple digit gains (in just a few days) was coming to a close, and taking profits on any and all of these stocks would be a good idea. It was an idea that went over like a lead balloon, judging from the responses I got. How ridiculous of me to turn bearish on those names! FCEL, PLUG, ZBB, and BLDP were all flying high, and obviously since they soared over the course of the two weeks leading up to that date, they could only keep going higher forever.
Well, I hate to be the one to say I told you so, but, I told you so. All four stocks hit their short-term peaks that day. Since then, Ballard Power Systems were down 54% at one point. ZBB Energy shares were 66% off their March 11th peak price just yesterday. Plug Power shares fell 54% over the week and a half after that day. And, FuelCell Energy shares gave up 46% in just a few days after peaking on the 11th.
I don't bring these names - or my call - up again to pat myself on the back. I'm bringing them up again simply to say, if I was right about the whole shebang then, I may be right about the new bullish call I'm making on all of them now, and on one of them in particular... ZBB Energy Corporation.
It's not just a shot in the dark either - there's a specific reason I like ZBB here and now, despite a notable lack of bullish news. The chart of ZBB Energy has dropped a key hint that all the sellers have been flushed out, and that the buyers are starting to trickle back in.
It's actually a three-part clue, with each daily bar for the past three days (counting today). On Monday, ZBB opened near its high for the day, then closed at the low, hitting a new low in the process. The second day - Tuesday - was the pivot. The open and the close were right in line with each other, and right in the middle of the daily bar.... suggesting an equilibrium between the sellers and the buyers (unlike Monday, which was all bearish). The clincher is today's bullishness - a mirror image of Monday's bearish exhaustion, and a confirmation that Tuesday's bar was indeed a pivot from a downtrend into an uptrend.
The proverbial "gravy" is the fact that today's volume behind the gain is already on pace to be the most volume we've seen for ZBB Energy Corporation since the 14th, when the pullback was in full swing.
Bottom line? The ZBB pendulum is swinging the other way again. Time to get on board.
For more trading ideas and insights like these, be sure to sign up for the free SmallCap Network newsletter. You'll get stock picks, market calls, and more, every day. Here's what you've missed recently.
No comments:
Post a Comment