NEW BULLISH Plays
Clean Energy Fuels - CLNE - close 15.35 change +0.45 stop 14.15
Target(s): 16.15, 16.80
Key Support/Resistance Areas: 17.00, 16.20, 14.80
Time Frame: 1 to 3 weeks
Clean Energy Fuels Corp. is a provider of natural gas as an alternative fuel for vehicle fleets in the United States and Canada. The Company designs, builds, finances and operates fueling stations and supplies its customers with compressed natural gas (CNG) and liquefied natural gas (LNG). The Company also produces renewable biomethane, which can be used as vehicle fuel, through its landfill gas joint venture. It also provides natural gas conversions, alternative fuel systems, application engineering, service and warranty support and research and development for natural gas vehicles, through its wholly owned subsidiary, BAF Technologies, Inc. In addition, the Company supports its customers to acquire and finance natural gas vehicles and obtain local, state and federal clean air rebates and incentives.
Why We Like it:
Talk about natural gas legislation in Washington is heating up and CLNE should be a big beneficiary. The stock has formed a solid basing pattern since the flash crash lows on 5/6 and I believe it is poised for a move higher. There is a primary downtrend line up near its 200-day SMA which is more than +10% higher from current levels and I think will easily be reached. Let's use a trigger of $15.15 to enter long positions. I've offered two targets that are +6.5% and +10.5% higher, and will consider adding a higher target if the move picks up steam. Our stop will be below the recent swing low and an upward trend line that began last October.
Suggested Position: Long CLNE stock if it trades to $15.15
Options Traders: Buy November $16.00 CALL, current ask $1.10
Entry on September XX
Earnings 11/9/2010 (unconfirmed)
Average Daily Volume: 973,000
Listed on September 13, 2010