Technical Analysis of Energy Conversion Devices (ENER)

Jul.17.06 | About: Energy Conversion (ENER)

Here's my technical analysis of alternative energy producer Energy Conversion Devices (NASDAQ:ENER):

* ENER started its current descending process in the middle of May '06, when it was just above the $55 mark.

* Within one month the stock lost about 40% of is value, when it dropped to the $32 mark. From the middle of June and into the first week of July, shares of ENER rallied back to the $37 mark.

* In the second week of July, the stock declined again falling to the $32 mark.

* This is known as a double bottom pattern. On Thursday the stock created the hammer in a downtrend pattern, while on Friday, ENER went up. These patterns are a good indication of another rally ending in a downtrend.

ENER 1-yr