Hydrogen fuel cell developer Plug Power (PLUG) recently was upgraded by a brokerage firm to "outperform" and its price target was boosted to $40 a share. Plug Power also announced here on Wednesday what it calls a "strategic partnership" with aircraft maker Airbus to study bringing its green hydrogen technology to aircraft and airports worldwide. PLUG is up in pre-market activity.
We reviewed PLUG on Oct. 8 and wrote, "The charts of PLUG have improved. Traders could either take a starter position at current levels and risk to $22 or look to buy strength above $30, risking to $25. The $50 area is our price objective for now."
Let's check on how our technical recommendation is performing.
In this updated daily bar chart of PLUG, below, we can see that prices have moved above the highs of September to give us a higher high of an uptrend. The 50-day moving average line is turning up and the On-Balance-Volume (OBV) line continues to improve as buyers remain more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is just now crossing above the zero line for a buy signal.
In this weekly Japanese candlestick chart of PLUG, below, we can see the improvement with a bullish candle this week. The OBV line and the MACD oscillator continue to improve.
In this updated daily Point and Figure chart of PLUG, below, we can see the recent strength and this chart does not show us the pre-market gains that are indicated on Wednesday. Getting interesting.
Bottom line strategy: We continue to recommend the long side of PLUG. Continue to buy strength above $30 risking to $25. The $50 area is still our price objective for now.
