Market Overview

Clean Diesel Forms A Bullish Break

Shares of Clean Diesel (NASDAQ: CDTI) are trading higher on the session by 7.42%, at $3.62. The stock has been trading in a sweeping wedge pattern for the past six weeks, but appears to be piercing the pattern to the upside today.

CDTI now has the potential to continue higher and test the mid-October high, at $4.54. Given the fact that the 20-day and 50-day moving averages have flattened out, and are very close to a bullish 20/50 MA cross, a surge of buy volume could really get this stock moving.

Note that Clean Diesel also has 5.89% short interest, which can add some fuel to the bull fire.

Given the lack of options on the name, your best bet is to purchase shares around this level (adding on an intra-day pullback) with a stop loss just below the 20-day moving average. This will give you upside potential, while protecting yourself against a failed breakout, as well as breakdown of the potential 20/50 MA cross.

Clean Diesel Technologies, Inc., along with its business combination with Catalytic Solutions, Inc., is a vertically integrated global manufacturer and distributor of emissions control systems and products, focused in the heavy duty diesel and light duty vehicle markets.

Posted-In: Long Ideas Small Cap Analysis Technicals Options Markets Trading Ideas

 

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