Real Goods Solar Inc fka RGSEQ

[tpham83]

http://www.thestreet.com/story/13133768/2/3-stocks-under-10-to-trade-for-big-breakouts.html


Real Goods Solar

Real Good Solar (RGSE - Get Report) operates as a residential and commercial solar energy engineering, procurement and construction company in the U.S. This stock is trading up 2.2% to 21 cents per share in Thursday's trading session.



Thursday's Range: $0.19-$0.21
52-Week Range: $0.18-$3.20
Thursday's Volume: 383,000
Three-Month Average Volume: 2.66 million

From a technical perspective, RGSE is trending higher here and displaying relative strength versus the overall market weakness with lighter-than-average volume. This stock has been stuck in a nasty downtrend over the last six months, with shares plunging lower from over $1 a share to its new 52-week low of 18 cents per share. During that downtrend, shares of RGSE have been making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of RGSE have potentially carved out a near-term bottom after the stock tested 18 cents per share twice over the last few weeks and held. This stock is now starting to spike higher off those support levels and it's quickly moving within range of triggering a big breakout trade. That trade will trigger if RGSE manages to take out some key near-term overhead resistance levels at 22 cents to 23 cents per share with high volume.

Traders should now look for long-biased trades in RGSE as long as it's trending above its new 52-week low of 18 cents per share and then once it sustains a move or close above those breakout levels with volume that hits near or above 2.66 million shares. If that breakout hits soon, then RGSE will set up to re-test or possibly take out its next major overhead resistance levels at 26 cents per share to its 50-day moving average of 30 cents per share.