• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing

Plug Power Isn't Out of the Woods Just Yet

I would not rush into a new long position in PLUG.
By BRUCE KAMICH
May 19, 2021 | 10:00 AM EDT
Stocks quotes in this article: PLUG, AMZN, WMT

For his final "Executive Decision" segment of Tuesday's Mad Money program, Jim Cramer checked in with Andy Marsh, president and CEO of Plug Power (PLUG) , the hydrogen fuel cell maker.

Shares of PLUG jumped 8.3% Tuesday after the company restated its earnings.

Marsh said he takes his company's accounting irregularities very seriously and they've been working very closely with their auditors and the SEC to implement all of the recommended changes. As of Tuesday, all of their earnings have been restated with minimal changes.

When asked about their business, Marsh said the future remains bright and they continue to work with great customers like Amazon (AMZN) and Walmart (WMT) . They look forward to federal loan guarantees to help them complete two green hydrogen facilities by the end of 2022 and they have three more locations planned.

Plug Power also continues to see strong demand from their data center business.

We looked at the charts of PLUG back on April 12 and wrote that "The charts of PLUG are still bearish and pointed lower. A test and break of the 200-day moving average line is likely in the near-term. Continue to avoid the long side."

In this updated daily Japanese candlestick chart of PLUG, below, we can see that prices did in fact break the 200-day moving average line. Prices are trading below both the 50-day and the 200-day lines and we could see a bearish dead or death cross of these two averages.

The On-Balance-Volume (OBV) line has drifted lower from early February telling us that sellers of PLUG have been more aggressive. In recent days the OBV line shows some improvement. We'll have to see how long that goes on.

The Moving Average Convergence Divergence (MACD) oscillator has shown some improvement from late March but it is still well below the zero line and a buy signal.

In this weekly Japanese candlestick chart of PLUG, below, we see some modest improvement. Last week we saw a possible bullish hammer pattern and this week we are hopefully getting the confirmation. A bottom reversal like the hammer can mean a reversal from down to up but it can also mean a change in trend from down to sideways.

The weekly OBV line shows some improvement from early April and the MACD oscillator is below the zero line but showing some narrowing.

In this daily Point and Figure chart of PLUG, below, we can see a potential upside price target in the $32-$33 area.

In this weekly close only Point and Figure chart of PLUG, below, we can see that the software is projecting a tentative downside price target of only $1.00. A bit drastic in my opinion.

Bottom line strategy: In this current "unsettled" stock market environment and rotation I would not rush into a new long position in PLUG. Let's wait and see if we get a retest of the early May low and if traders defend the level.

(Amazon and Walmart are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells these stocks? Learn more now.)

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Markets | Stocks | Technical Analysis | Trading | Energy | Technology | Transportation | Mad Money | Executive Interview

More from Investing

You Know What They Say About Dull Markets ...

James "Rev Shark" DePorre
Aug 18, 2022 4:37 PM EDT

Don't short 'em. Let's look at how investors responded to the thin trading and lack of big news -- and what we can expect to come.

With Oil, Keep Your Eyes on the Prize by Focusing on Supply

Jim Collins
Aug 18, 2022 3:59 PM EDT

The earth's oil supply is only going in one direction -- down -- and here's what that means for investors.

I Dislike Blue Apron But Here's a Trade, No Strings Attached

Mark Sebastian
Aug 18, 2022 2:30 PM EDT

The company is never going to make money and is likely heading back below $3 a share.

Europe's Recession Is All About Gas

Maleeha Bengali
Aug 18, 2022 1:30 PM EDT

Prices could very well stay elevated for a long time despite the economy going into a manufacturing recession.

The VIX and SPIKES Have Similarities, But There Are Meaningful Differences

Mark Abssy
Aug 18, 2022 12:00 PM EDT

And if you feel that volatility is an asset class that has a place in your strategy there are 2 funds that may be worth a closer look.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 02:23 PM EDT STEPHEN GUILFOYLE

    We're Cleaning Out This Retailer From the Bullpen

    Check out the latest moves in TheStreet's Stocks U...
  • 10:24 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    To Improve Your Trading and Investing, Spend More ...
  • 08:44 AM EDT PETER TCHIR

    CPI Beats Expectations, But Maybe Not the 'Whisper'?

    Slightly better-than-expected inflation across the...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login