Shares of Plug Power ( PLUG) are up smartly Monday, gaining more than 10% on the day.
In our Nov. 22 PLUG review we wrote that, "Traders who are long PLUG can continue to hold but I would raise stops to $36 from $31. Our first target is $53-$54 with $58 after that." The price strength in November did not last for long and the shares turned lower to hit our sell stop.
Let's check in on the charts again of this hydrogen fuel cell solutions company.
In the updated daily bar chart of PLUG, below, we can see that the shares have rallied above the 200-day moving average line and that the slope of the 50-day line is now positive. The trading volume declined in March but the On-Balance-Volume (OBV) line continued to rise, telling us that buyers of PLUG are being more aggressive.
The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but has narrowed.
In this weekly Japanese candlestick chart of PLUG, below, we can see that prices have rallied above the 40-week moving average line. The weekly OBV line shows a positive trend and looks stronger than the price chart.
The MACD oscillator is crossing to the upside for a cover shorts buy signal.
In this daily Point and Figure chart of PLUG, below, we can see a potential price target in the $36 area.
In this weekly Point and Figure chart of PLUG, below, we can see a target in the $41 area.
Bottom-line strategy: PLUG's share price has improved the past two months but I don't see strong enough clues to recommend purchase. I would like to see a bigger base pattern first.
