The USD 10.81 support, currently tested, should allow Renewable Energy Group to return toward the USD 13.13 resistance.

From a fundamental viewpoint, the security is cheap with a PER of 2.3x for 2013 and 6.7x for 2014. Besides, EV/Sales is low with a ratio at 0.21x for this year. The consensus is also positive with an average target price at USD 16.3.

Technically, the security is in a negative configuration in the short term as the bearish trend of 20-day moving average, currently at USD 12.2, shows. Nevertheless, the stock seems in an oversold situation, near to its USD 10.81 support in daily data and the trend line which is supporting prices. This level might stop the bearish trend in the short term.

The trading strategy can benefit from the proximity of the strong support currently tested in order to buy Renewable Energy Group in a good timing. The potential gain is more than 15% in the short term. Investors might place a stop loss order at USD 10.8 in order to avoid important losses.