China Energy Recovery Inc. (CGYV) had given investors a terrible February, until today. The move from January’s close of $2.00 to this month’s low of $1.15 was made even more heart-breaking by the fact that it followed what looked like was going to be a big upside breakout. I was close to putting CGYV on the shelf myself, then a funny thing happened…. the stock started to recover.

Today’s 28.5% rally only pulled the stock back up to $1.80, but that’s a heck of a lot better than $1.15. More important to us though, it may be a hint that the stock is gearing up for another breakout effort. Though volume hasn’t been exceedingly strong behind the move, it’s been getting stronger (more bullish than average).

My line in the sand is still $2.00, and I don’t mean just getting there or getting a little higher. I mean the stock needs get above there and stay above there, with the support of some big volume. I think it can happen though, so let’s leave this stock on the radar.

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