Bloom Energy Corp. (BE) was raised to an overweight rating (buy) by a major sell side firm here on Tuesday. Bloom makes solid-oxide fuel cell systems for on-site power generation and recently expanded into Spain and Portugal to support the electrification of ports and the development of hydrogen production there. Let's check out Bloom's charts to see what may be ahead for its stock.
In this daily bar chart of BE, below, I see a sideways trend the past year. Prices have crossed above and below the popular moving averages several times. Trading volume increased into the August high and has been stable the past few months. The On-Balance-Volume (OBV) line shows twin lows in October and December. The Moving Average Convergence Divergence (MACD) oscillator has fluctuated around the zero line the past year and is currently below it.
In this weekly Japanese candlestick chart of BE, below, I see a neutral pattern with some positive clues. Prices have made higher lows from May but also lower highs from last November. At some point this tighter and tighter trading range could break out into a new trend. Trading volume has diminished through the pattern and that is typical. The OBV line has been steady the past two years. The MACD oscillator is slightly below the zero line.
In this daily Point and Figure chart of BE, below, I can see an upside price target in the $23 area.
In this second Point and Figure chart of BE, below, I used weekly price data and a five-box reversal filter (torture the data to give you the answer you want). A price target of $93 is projected -- a big leap of faith.
Bottom line strategy: The weekly Point and Figure chart suggests this stock has some bullish potential but the other charts are not giving me the same buy message. Let's keep an eye on BE and return to the charts in a few months from now.
