Things are going well for solar stock UGE International Ltd. (UGE:TSX.V; UGEIF:OTCQB), which looks like a buy here after what is believed to be prolonged base building since it hit bottom last June after a reactive phase, as can be seen on its latest 2-year chart below. The strong Accumulation line which is currently close to new highs despite the price being less than half what it was at its peak, supports a positive resolution of this trading range.
On the 6-month chart we can see that a small Double Bottom has been building out this year above quite strong support, following a significant drop from its November high that has brought it back to a better entry price. Although moving averages are still in unfavorable alignment that will change fast if it rallies from here especially as price and moving averages are quite tightly bunched together, with this outcome made more likely by the relatively strong Accumulation line, as mentioned above. There is plenty of upside potential from here, as made clear by the position of the MACD indicator.
UGE is therefore rated an immediate speculative buy here.
UGE International website
UGE International Ltd, UGE.V, UGEIF on OTC
Clive Maund has been president of www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years' experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.
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Charts provided by the author.