Capstone Turbine Corporation (NASDAQ:CPST) Cuts Down On Strong Resistance And Selling Pressure

Capstone Turbine Corporation (NASDAQ:CPST) trimmed down a little on Wednesday after a flat close on Tuesday. The stock lost a significant amount on Wednesday with a single day loss of 2.69%. The stock rather followed a downward trend on Wednesday with no upward movement.

Capstone Turbine Corporation (NASDAQ:CPST) has been on a good upward bias in the last few trading sessions, with about 8% gains in the last week. The stock seems to have topped out and a may see a trend reversal in the next few trading sessions. The daily chart indicates the stock has been trading in avery narrow range with an upside of $2.35 on the upside and $1.97 on the downside. We believe the stock may continue to trade in a volatile manner within this range.

The momentum indicators for Capstone Turbine Corporation (NASDAQ:CPST) on the daily charts suggest a neutral stance, the indicator suggest the stock has a weak upward momentum but good support levels. The relative strength index too is turning downwards from the no trade zone, this implies there is a selling pressure on the stock, and the stock may see some downside in the next few trading sessions.

The stock seems to be forming a triangle pattern on the daily charts, this indicates the stock has no prominent trend at present, the stock may continue to trade in this narrow range, a breakout above $2.24 could see the stock rally upwards, on a breakout below $1.95 could see some downside for the stock.

From current levels the stock has a good first support around $1.91 levels and a strong resistance around $2.25.


(FIGURE): Daily Chart For Capstone Turbine Corporation (NASDAQ:CPST) 

Latest Buzz

Capstone Turbine Corporation declared the company has good orders in their books, the company stated they received orders for two capstone C800s and one capstone C1000, which were ordered by a south Carolina hospital. These are flagship products of the company. The company is capping in on the hospital orders giving them an edge over their competitors.

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