Shares of alternative energy company Plug Power (PLUG) has been in a long-term decline. On Monday the stock price jumped higher in reaction to news that the company made three new deals for green hydrogen electrolyzers in Europe.
Is the stage set for further gains? Let's check.
In the daily bar chart of PLUG, below, I can see some carryover buying from Monday. Prices have edged closer to the declining 50-day moving average line while the slower-to-react 200-day moving average line intersects up around $16.
The trading volume looks like it is more active this month, suggesting increased investor interest. The On-Balance-Volume (OBV) line has been in a decline since August.
The Moving Average Convergence Divergence (MACD) oscillator made a higher low in April than in November for a bullish divergence. The MACD oscillator is still below the zero line.
In the weekly Japanese candlestick chart of PLUG, below, I can see a longer-term decline from early 2021. The shares trade below the declining 40-week moving average line. The weekly OBV line is still pointed down.
The 12-week price momentum study shows higher lows from April 2021 to now for a large bullish divergence when compared to the price action. A bullish divergence from momentum readings means prices are due for a rally but it does not mean there is a direct cause and effect.
In this daily Point and Figure chart of PLUG, below, I can see that the shares reached an upside price target in the $8.50 area.
In this weekly Point and Figure chart of PLUG, below, I can see that the shares reached and exceeded a downside price target in the $12-$11 area.
Bottom-line strategy: PLUG could trade up to the $11 area in the days/weeks ahead. After that I will have to wait and see.
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