CVD Equipment: Longer Term Uptrend and Breakout Above Resistance
CVD Equipment (CVV) is a small cap manufacturer of specialty equipment used to manufacture solar, nano materials, advanced electronic components and coatings for research and industrial applications. Their equipment utilizes a Chemical Vapor Deposition process and they have been in business since 1982.
CVV recently issued a press release announcing substantial new orders which should lead to powerful revenue increases during 2014. The company is profitable with improving sales and earnings. They are also involved the exciting new technology of manufacturing graphene, which is capturing a lot of investor attention. The technical picture is very positive for the stock.
After bottoming in July of 2013, CVV rose dramatically and has established the longer term trend line as shown in the solid blue line. Those early gains have consolidated in $12.50 - $14.50 area for the past three months. Notwithstanding that consolidation, On-Balance Volume has continued to rise. Recently, with the press release of the substantial new orders, the stock has broken above near term resistance and now looks poised to continue the sharp up-trend began last summer. The stock is both fundamentally and technically attractive here, and offers good upside to aggressive traders who can tolerate the inherent volatility this small cap stock has exhibited. I am looking for it to surpass its previous high at $20, established in 2011.