Thursday, December 13, 2007

Capstone Turbine CPST

Capstone Turbine (CPST) was one of the few bright lights in a volatile session. The stock completed a healthy 4-month base, with decent buying spikes into the right-hand-side of its base. On Wednesday, it cleared two resistance levels: $1.37 and $1.43 (well - finished bang on the latter) - to make it a good buy with a limit order at Wednesday's closing price. Stop placement can be set below yesterday's lows. Some may prefer to fish for fills using GTC buy order orders inside $1.25-1.35 price congestion, taking advantage of any intraday weakness on a backtest of support.

Technicals are in good shape with a resistance break in the MACD trigger line and steady accumulation as measured by rising on-balance-volume. Slow stochastics [39,1] are above the bullish mid-line (= rising bull momentum) on increased trend strength as measured by the directional index above 20 and climbing.

As for a price target; the projected target from the base is $1.95.

The point-n-figure chart still has some way to go before it turns bullish with resistance likely to kick in around $2.50.