Small Cap Highlights
Ener1, Inc. (OTCBB: ENEI.OB)
For
Tuesday, February 19^th, 2008

Tony Golan
Chief Technical Analyst
StockProfit.com™

Zoom

This week I chose to highlight the chart of Ener1, Inc. (OTCBB: ENEI). ENEI is starting a powerful new long-term up-trend. The stock is making higher highs and higher lows and is now above a rising 200-day moving average (the red line on the chart above). Relative Strength Differential (RSD), our proprietary indicator for selecting stock in super-strong up-trends, is well above the 25% threshold line, confirming the up-trend in ENEI is moving much faster than the S&P 500 and is therefore likely to remain strong and to continue trending higher.

ENEI started its long-term up-trend in mid-September of last year, going from a low of 0.27 to a high of 1.08 last Friday. More recently, the stock hit a higher low of 0.58 on January 22nd, so it almost doubled in the last three weeks. That means that if the stock now closes below 0.58, it will invalidate the up-trend and reverse the intermediate-term trend down.

So, the up-trend in ENEI indicates it is very strong, but every stock looks strong when it's going up. If the stock just about doubled in the last three weeks, and it will take a decline of just about 50% from here before you find out you're wrong, it means this is not the right time to enter this stock.

However, due to the strength that it has shown lately, it is likely to continue trending higher in the longer-term. Therefore, it would be much more prudent to wait for a pullback in the stock before entering. That would also allow the trader to evaluate the pullback when it finally occurs, and see whether it makes a higher low or not, and whether it pulls back mildly and slowly or hard and fast. Its strength and the ability to continue making higher highs and higher lows in the face of a down-trend elsewhere make this a compelling stock to at least watch.

Tony Golan
Chief Technical Analyst

Disclaimer: Copyright© 2008 StockProfit™. All rights reserved. StockProfit™ is an independent electronic publication providing information on select public companies. StockProfit™ is not a registered investment advisor or broker-dealer. There is a risk of loss in all of trading. Past performance is no indication nor guarantee of future results. The information contained herein is believed to be accurate.This update is provided as an information service only, and the statements and opinions in this update should not be construed as an offer or solicitation to buy or sell any security. In no event shall StockProfit™ and/or its publisher, P.A. Relations or any of its employees or affiliates, be liable for any direct, incidental, consequential, indirect or punitive damages whatsoever arising out of the use of the Information, or for any errors or omissions in the content thereof, including, but not limited to, from any investment loss, damage or expense incurred by any investor resulting from the Information, or from the purchase or sale of any profiled company or any company which we make commentary. We recommend using good-'till-cancelled stop orders to minimize losses in the event of an adverse price movement. We have not been compensated by company(ies) mentioned above in any way. We do not hold any positions whatsoever in the above mentioned company(ies).