For his second "Executive Decision" segment of Mad Money Thursday night, Jim Cramer spoke with Andrew Littlefair, president and CEO of Clean Energy Fuels (CLNE) , the natural gas provider.
The stock price soared 19% after being featured on the WallStreetBets Reddit forum.
Clean Energy Fuels is no stranger to the natural gas revolution, but Littlefair admitted that demand for natural gas as a bridge fuel didn't materialize the way they expected. That's why the company pivoted to RNG, or renewable natural gas, which is made from the methane in animal waste.
This new focus caught the attention of Amazon (AMZN) , which recently partnered with Clean Energy Fuels and has the ability to take a 20% stake in the company.
Littlefair explained that America uses 35 billion gallons of diesel fuel every year, and it creates five to seven billion gallons of animal waste that could be converted into natural gas. That makes Clean Energy a win-win for both removing methane and replacing dirty diesel with cleaner burning natural gas.
We looked at the charts of CLNE on June 10 and wrote that "Aggressive traders could go long CLNE at current levels. Risk a close below $8. On the upside our targets right now are $25 followed by $41."
Let's check and see if the charts and indicators have changed.
In this daily bar chart of CLNE, below, it looks like prices have settled into a bit of a trading range market above the bottoming 50-day moving average line. The slope of the 200-day moving average line remains positive. The trading volume has been heavy recently and the On-Balance-Volume (OBV) line has been strong. The Moving Average Convergence Divergence (MACD) oscillator has moved above the zero line for an outright buy signal.
In this weekly Japanese candlestick chart of CLNE, below, we can see what we consider a positive story. Prices made a large base around $2 before exploding to the upside. A typical correction unfolded with prices correcting roughly 50% of the rally. The rising 40-week moving average line has acted as support on the correction.
The weekly OBV line is strong and the MACD oscillator is narrowing towards a bullish crossover and potentially a fresh buy signal.
In this daily Point and Figure chart of CLNE, below, we can see a potential upside price target in the $24 area now.
In this updated weekly Point and Figure chart of CLNE, below, we can see a lot more price history but only a $28 price target now.
Bottom line strategy: I find it interesting to see how indicators and price targets can change as things evolve. Traders can continue to hold recent longs risking a close below $8 still. Our new targets are $24 and then $28. Things will continue to evolve. Stay tuned.
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