In his first "Executive Decision" segment of Mad Money Thursday evening, Jim Cramer spoke with Andy Marsh, president and CEO of Plug Power (PLUG) , the hydrogen forklift maker that's on the cusp of the alternative fuel revolution.
(For more on PLUG, see Jim Cramer: Call Me a Hydrogen Believer, and Plug Power Will Make It All Happen)
Plug Power announced on Thursday a partnership with the Korean-based SK Group.
Marsh said Plug Power's mission continues to be expanding the green hydrogen economy and their partnership with SK in Korea is another step forward in that mission. He said the conglomerate chose to work with Plug Power because they could "do it all," from building hydrogen fuel stations, to generating green hydrogen and even backup power facilities.
Green hydrogen is estimated to be a $40 billion opportunity by 2040, Marsh said, and Korea is planning on using 150 times as much hydrogen as the U.S. does today. He told viewers to expect more news from Plug Power in Asia and Europe coming soon.
We looked at the charts of PLUG yesterday and wrote that "PLUG is likely to finish the day with an upside price gap. This is not a breakaway gap so that leaves two other kinds of gaps to consider - a runaway gap and an exhaustion gap. Unfortunately we won't know what kind of gap we have for a few days. Trade carefully."
Let's check on the charts again.
In this updated daily Japanese candlestick chart of PLUG, below, we can see the price gap or window mentioned in Thursday's review. We still do not know if this gap or window will be a runaway gap or an exhaustion gap but the Japanese look for windows in uptrends to act as support until the window is closed. In other words dips to $37 might be bought by traders until prices actually close below $37 - the low end of the window.
In this updated daily Point and Figure chart of PLUG, below, we can see the big rally without a price gap as this charting methodology fills in the X's and O's as if there were trades at those prices. The chart now shows a potential $80 price target.
Bottom line strategy: Let's go with the Japanese approach - let's see how the window or western gap acts as support.
