Ballard Power Systems (BLDP) is a provider of fuel cell products and its share price surged higher Thursday on the heels of moves in Washington, D.C. to move climate legislation forward.
Let's check out the charts and indicators. of Ballard Power to see what's up with the stock.
In this daily bar chart of BLDP, below, we can see that the share price of BLDP suffered a long decline into the middle of May. From this May nadir prices have been showing improvement. Dips to $6 have been bought. Prices have rallied above the rising 50-day moving average line. The daily On-Balance-Volume (OBV) line is showing improvement from a May low. The Moving Average Convergence Divergence (MACD) oscillator shows steady improvement from May and is now crossing the zero line for an outright buy signal.
In this weekly Japanese candlestick chart of BLDP, below, we see a number of positive signs. There are lower shadows in May and June and a bullish engulfing pattern at the end of June/early July to mark a bottom reversal. The declining 40-week moving average line is not all that far above the market around $10 or so. The weekly OBV line is showing improvement in June and July. The MACD oscillator has crossed to the upside for a cover shorts buy signal.
In this daily Point and Figure chart of BLDP, below, we can see a potential upside price target in the $9 area.
In this weekly Point and Figure chart of BLDP, below, we can see a higher price objective in the $12 area.
Bottom line strategy: Traders could go long BLDP around $8, risking below $6 where we have seen buying support. The $12 area is our price target for now.
