FCEL (FuelCell Energy Inc) offers an objective long entry here around the 0.96 level & up to the 1.05 area for a swing trade to the 1.20 or 1.34 resistance level with price targets set 2 cents below each (T1=1.18 & T2=1.32). The suggested stop is any move below 0.90 & the suggested beta-adjustment is 0.2 (2/10th of a typical position size) or less.
FCEL daily May 30th
As a low-priced penny stock with a market cap of only $57.25M, FCEL should be considered an extremely aggressive/speculative trade. As such, one should pass if this type of very aggressive trade does not mesh with their trading style, objective & risk tolerance. As with any low-priced, thinly traded stocks, limit orders are preferable over market orders. Many companies will aggressively defend the $1.00 share price level to avoid a potential delisting & although I don’t know the exact statistics, I will say that a fair percentage of stocks that drop below the 1.00 price level eventually become worthless. For those wanting to do a little due diligence on the stock, click here for FuelCell’s profile & other statistics on Yahoo Finance or click here to view the companies website.