CLNE data by YCharts
Clean Energy Fuels
Another earnings short-squeeze trade in the alternative energy complex is
Clean Energy Fuels
(CLNE - Get Report)
, which is set to release its numbers on Monday after the market close. This company, together with its subsidiaries, provides natural gas as an alternative fuel for vehicle fleets in the U.S. and Canada. Wall Street analysts, on average, expect Clean Energy Fuels to report revenues of $80.10 million on a loss of 17 cents per share.
This heavily shorted stock has been beaten down pretty hard during the last four months, with shares dropping from its March high of $24.75 to a recent low of $12.13 a share. The current short interest as a percentage of the float for Clean Energy Fuels is extremely high at 30.5%. That means that out of the 57.52 million shares in the tradable float, 17.48 million shares are sold short by the bears.
From a technical perspective, CLNE is currently trading below both its 50-day and 200-day moving averages, which is bearish. Following that large drop in March, shares of CLNE have entered a sideways trading pattern for the last two months between $12.13 and $16.75 a share. A move outside of that range post-earnings will likely setup the next major trend for CLNE.
If you're in the bull camp on CLNE, then I would wait until after they report earnings and look for long-biased trades if it manages to break out above some near-term overhead resistance levels at $14.39 to $15.32 a share, and then above $16.75 a share with high volume.
Look for volume on that move that registers near or above its three-month average action of 1,622,350 shares. If we get that move, then CLNE will have a great chance of re-testing and possibly taking out its next major overhead resistance level $19.69 a share.
I would simply avoid CLNE or look for short-biased trades if after earnings this stock fails to trigger that breakout, and then moves back below some near-term support levels at $13.29 to $13.15 a share with heavy volume. If we get that action, then CLNE will likely re-test and possibly take out its June low of $12.13 a share.