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American Superconductor Corporation,founded in 1987,is an energy technologies company, offering an array of solutions based on two proprietary technologies: programmable power electronic converters and high temperature superconductor wires. You can read more from AMSC’s website.

Because of this report, Shanghai Electric Cable Research Institute Expands Strategic Alliance with American Superconductor, the speculation that AMSC will have some solid growth started to run wild and it broke out its base in April.  Speculation is what drives stocks up and down.   If all you see were facts, the stock market would be dead. 

So we have some stories behind this stock.  let’s take a look at the chart.    The chart says AMSC has been in an uptrend since April and the trend is preserved pretty well.  After a swift jump from 20 to 29, it started to pull back and has been trading sideways for quite a while.   A solid double bottom formation is in the making.  Last Friday(6/19/2009) was the first day that we saw an increased volume.Therefore, a good long entry could have been made on the last Friday.  The reason I did not open a swing long position is because of the weekend.  I think I might have another opportunity to do it on Monday.

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