Clean Energy Fuels Corp. (NYSE: CLNE) broke off a descending trendline on June 3 that had kept the stock low since February 10 when it hit $ 19.79 – the highest price it traded since April 2012 would have.
On June 2, a report from the US Department of Energy in partnership with Norway, Denmark, the Global Maritime Forum and the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping planned to research, develop and deploy renewable fuels for shipping, planning a bullish pause .
Once considered too dangerous and expensive to use in any practical way, renewable fuel, which has about three times the energy of gasoline, has seen a technological breakthrough that could facilitate its adoption.
Although lithium-ion batteries are often seen as the answer to reducing emissions, electrical power is unlikely to be suitable for long-haul freight or air travel in the near future.
Clean Energy, a California-based natural gas and renewable natural gas company, may see renewed interest from investors as the US and other countries work to meet the goals of the Paris Agreement.
The clean energy diagram: After Clean Energy stock hit a low near the $ 7.50 mark, aided by the 200-day simple moving average (SMA), Clean Energy stock gained enough strength to break a declining trendline and bounce above a resistance level at $ 9.12. The stock shot up 42% between June 2nd and June 4th and has spent the last two days consolidating, placing an inside bar on Monday and holding Friday’s low on Tuesday morning.
Although Clean Energy’s stock trading was slightly lower from Monday’s closing price, the stock was able to hold the $ 9 area as support, helping the eight-day exponential moving average (EMA) cross above the bullish 21-day EMA. On Tuesday morning, Clean Energy was trading above the two widely-tracked EMAs and the 200-day SMA, suggesting that general sentiment for the stock is bullish.
Bulls want Clean Energy stock to continue holding Friday’s low as it consolidates and prepares for the next move north. If Clean Energy can bounce above its next resistance level of $ 11.86, it has scope to move towards the $ 14 level.
Bears want sellers to get into the stock to push it back below $ 9.12. If it were unable to hold this level as support, it could slide back to $ 7.50.
CLNE price promotion: On the last review, Clean Energy Fuels shares were down 6.2% to $ 9.72.
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