Bullish Triangle Breakout Alert: Kandi Technologies (KNDI)

There isn’t much to get excited about in the world of green stocks these days particularly in the China based plays, but there are a few (make that very few) promising setups out there.  While we wait for a bottom in the solar plays.. and wait.. and wait .. and… we continue to see bullish technical patterns in green stocks such as Westport Innovations (WPRT), Greenhunter Energy (GRH) and  GT Advanced Technologies (GTAT).  There is another bullish setup taking place in a stock that has been punished for many months now – Kandi Technologies (KNDI).

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In a post on July 11th, I said the bottom was in on KNDI following news that the company had landed another deal to expand the use of electric cars in China.  I still believe that to be the case.  After a healthy and bullish consolidation, it appears the stock is ready to resume its move off the bottom with a breakout from a bullish triangle formation this morning.  Take a look at the chart below.


Notice the high volume surge in the first part of July, followed by the healthy consolidation along support of the 50 day moving average as the price band gets squeezed to a point.  That’s an indication of a stalemate between buyers and sellers with the resulting move acting like a spring out of consolidation.  We have that springboard move today from this bullish formation.  I’m looking for a move to at least the $3.60 level within a few weeks (25 – 30% move).

==> Click Here For Your FREE Daily Kandi Technologies Analysis

Disclaimer: I have no position in KNDI at this time, but considering a position before the end of the day today.

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