Plug Power Needs a Fresh Charge

Shares have spent more time in a downtrend than in an upward trend. Here's what could be in store next.

Plug Power Inc. (PLUG) is engaged in the development of hydrogen fuel cell systems that replace conventional batteries in equipment and vehicles powered by electricity. PLUG shares have made some dramatic moves over the past 20-plus years. Let's check and see if any more drama lies ahead.

In the daily bar chart of PLUG, below, I can see that the shares have spent more time in a downtrend than the time spent in an upward trend. Rallies in March and August managed to extend above the 200-day moving average line but this current rally may actually stall at the declining 200-day line.

The trading volume shows only a slight improvement in January. The daily On-Balance-Volume (OBV) line is above the zero line but the two moving averages that comprise this indicator are on top of each other.

 

In the weekly Japanese candlestick chart of PLUG, below, I see a longer-term downward trend. Prices are below the declining 40-week moving average line.

 

The weekly OBV line is soft. The MACD oscillator is struggling just to make a cover shorts buy signal.

 

 

In this daily Point and Figure chart of PLUG, below, I see a possible upside price target in the $25 area.

 

 

In this weekly Point and Figure chart of PLUG, below, a longer-term price target of $31 is indicated.

 

 

Bottom-line strategy: PLUG may rally a bit more in the weeks ahead but the longer-term downtrend in price is a problem.

 

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