U.S. Geothermal is Building Up Steam Again (HTM)
Back on March 26th, yours truly took something of a big risk by penning some bearish thoughts on U.S. Geothermal Inc. (NYSEMKT:HTM). It was nothing personal against the company. It was simply that HTM had gotten overextended.
The premise, of course, was unpopular at the time. U.S. Geothermal Inc. was still basking in the glory of some serious fiscal success, and its outlook was quite encouraging to boot. HTM shares were vulnerable, however, simply because they had taken on a life of their own and were pushed beyond a reasonable price in the wake of the euphoria.
It was, by the way, the right call. HTM shares ended up making a major peak at $1.08 that day, and had fallen to a low of $0.51 by late May.
This reporter isn't revisiting U.S. Geothermal Inc. to gloat, however (well, not to gloat much). HTM is back in focus today as a follow-up on the call, and to post a new near-term bullish call on this geothermal energy name. It looks like the bottom has already been made, and this week's bullish second wind is on the verge of catapulting shares again.
The key to any bullishness from here is actually rooted in what happened back on May 22nd. That multi-month low was just a brush of the key 200-day moving average line (green), and poof - the bulls took over again. The effort didn't last very long; the stock was slumping again by late June. Over the course of the first half of July, however, U.S. Geothermal shares have logged some higher lows while also putting some serious pressure on a ceiling at $0.66. That's where the stock's topped a few times since late May, and it's also roughly where the 100-day moving average line (gray) is; other moving average lines aren't too far away. It's also worth noting the volume on the way up this month so far has been higher than average.
The safe move here would be waiting for HTM to clear $0.66. That may be an unnecessary caution, however. All the tell-tale signs of another rally are already in place, and waiting for the breakout may leave you chasing the stock once it takes flight.
AI
