ZAP (OTC Bulletin Board: ZAAP) is an alternative energy company heavily involved in designing and producing electric cars. A recent promotion by ZAP has a photo of a their electric taxi (Joint Venture with Zhejiang Jonway Automobile) being shown to California Governor Arnold Schwarzenegger at the recent Summit of Advanced Transportation. ZAP has also moved onto the finals in the Progressive Automotive X Prize competition.

View the car here

The stock's chart has been setting up for the past 6 months with strong resistance at .40. This resistance dates even further back to May of '09 when it initially brokeout of the downtrend. It attempted the .50 level then, however, it could not hold the .40 support and has now set itself up nicely with higher lows pushing against the now .40 resistance level. This could be the week of a nice breakout. Watch this closely. I'm setting a trigger order for a bounce above .40, with a quick stop loss if it can't hold. Otherwise my target sell is .60 as this could run very nicely if the volume comes in heavy.