Hydrogen fuel cell developer Plug Power Inc. ( PLUG) seems to be a stock with more promise for the future than investment returns for the present.
Let's check out the charts and indicators.
In the daily bar chart of PLUG, below, I can see that share prices made a new low for the move down in March. PLUG trades below the declining 50-day moving average line and below the negatively sloped 200-day line.
The daily On-Balance-Volume (OBV) line has been weak since August and tells us that sellers of PLUG have been more aggressive than buyers. The Moving Average Convergence Divergence (MACD) oscillator is below the zero line in sell territory but trying to generate a cover shorts by signal.
In the weekly Japanese candlestick chart of PLUG, below, I can see a recent doji pattern followed by a spinning top with a lower shadow. These two candles do not make a reversal pattern but they suggest that prices are in balance between bulls and bears. The 40-week moving average line is bearish.
The weekly OBV line is in a decline and reinforces the bull case. The MACD oscillator is bearish.
In this daily Point and Figure chart of PLUG, below, I can see a downside price target in the $9.35 area.
In this weekly Point and Figure chart of PLUG, below, I used a five-box reversal filter and can see a lower price target in the $6.32 area.
Bottom-line strategy: Shares of PLUG continue to struggle. Maybe a rally in the price of crude oil can get things moving on PLUG but I am not that encouraged.
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The technical signals of the iconic food company seem lukewarm at best.
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