EVCC - Go Long?

Moniker: jmar
Symbol: EVCC
[X] Entry
Duration: Short Term
Direction: Go Long
Comments: tat i have been wanting to buy this again because it just seemed they had a neat idea, but these last 2 days make me wonder if they are borrowing money or selling the company the way it has jumped in price, could you look this one over thanks

EVCC is in the retail sector, specifically environmentally friendly products. This high beta stock is definitely not for the weak of heart (disclaimer, I have held a small stake since you first pointed this stock out). To address your question, what makes a stock move is never clear until later when the news finally arrives. In the meantime, I've pulled up a weekly chart to try and explain this move. What I see was a large volume break higher back in November and this plunge/rebound was a successful test of that area.

The fact that it surged is the news that will likely come out later. What's important is that this huge surge has taken us right to the former resistance. The likely case here is that it rests for a while, possibly retraces and then tries to break higher. A break over the $2.30 area on volume would be huge and you have to buy some of that break if it comes or and look to buy the retrace as well. An immediate break probably offers a quick retrace. If it spends some time here and then breaks, there might not be much of a retrace. Any way you cut it, it's volatile and it would be hard to hold a large position at this juncture.