A long-time Real Money subscriber asked me about Plug Power (PLUG) this morning. "Is it still bullish or should I take my profits and go? Do I see a golden cross on the chart?" they wrote.
Let's check out the PLUG charts this morning.
On Nov. 2 we wrote that, "PLUG has improved nicely. Traders who are long should continue to hold but raise stops to $31 from $25. The $53-$54 area is our new price target."
In the updated daily bar chart of PLUG, below, we can see that the shares have rallied nicely since our recommendation. PLUG is trading above the rising 50-day moving average line. PLUG is trading above the 200-day moving average line but its slope is still negative. The 50-day line is indeed crossing above the 200-day line for a bullish golden cross of these averages.
The daily On-Balance-Volume (OBV) line has been steady this month. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line and could turn up (bullish) or down (bearish) depending on the price action in the days ahead.
In the weekly Japanese candlestick chart of PLUG, below, we see a positive-looking chart. Prices are trading above the 40-week moving average line but its slope is negative.
The weekly OBV line is leading the way higher with its own new high. The MACD oscillator has crossed above the zero line for a new outright buy signal.
In this daily Point and Figure chart of PLUG, below, we can see that the trade at $46 has refreshed the uptrend. The price target is $58.
Bottom-line strategy: Traders who are long PLUG can continue to hold but I would raise stops to $36 from $31. Our first target is $53-$54 with $58 after that.
