On Sept. 21, Clean Energy Fuels Corp. (NASDAQ: CLNE) announced it had entered a partnership to supply World Fuel Services Corporation (NYSE: INT) with an estimated 78 million gallons of liquefied natural gas to power two container ships for service between Long Beach and Hawaii.
The news flipped the stock into an uptrend after trading sideways between the $6.54 and $8.64 levels since July 13.
The stock has statistics that make it appealing to retail investors. Clean Energy has a relatively small float of just 176.69 million shares and high ownership levels, with 20.77% of the float held by insiders and an additional 38.86% held by institutions.
See Also: Want to Buy Clean Energy Fuels Corp Stock? See This First.
The Clean Energy Chart: On Monday morning, big bullish volume came into Clean Energy and drove the stock up over 12% higher, where it slammed into resistance at the $9.12 mark. As of early afternoon, over 6.39 million Clean Energy shares had exchanged hands compared to the 10-day average of 4.94 million.
The move allowed Clean Energy to confirm its uptrend by making a higher high above the Sept. 23 high of $8.44. To continue the uptrend, the stock will eventually need to make a higher low above the $8.09 level.
When Clean Energy puts in its higher low, it will allow for the relative strength index (RSI) to cool off. On Monday, the stock’s RSI was approaching the 63% level, indicating consolidation will be needed in the future.
Clean Energy is trading above the eight-day and 21-day exponential moving averages (EMAs), with the eight-day EMA trending above the 21-day, both of which are bullish indicators.
The stock is trading below the 200-day simple moving average (SMA), which indicates overall sentiment is still bearish. Clean Energy will need to recapture the psychological support level of $10 to regain support of the 200-day SMA.
-
Bulls want to see sustained bullish volume pop the stock up above the $9.12 level or for consolidation to begin under the level while strength is gathered for a move higher. If Clean Energy can regain the level as support, it has room to trade up toward $10.
-
Bears want to see big bearish volume come in and drive the stock back down below the $8.64 level, which would indicate Monday’s price action was a bull trap. If Clean Energy falls back below the level, it could retest a support area at $7.50.
clne_sept._27.png
See more from Benzinga
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
