FuelCell Energy Inc (NASDAQ:FCEL) shares were trading higher premarket Monday, but have since fallen and are trading slightly lower. The stock was moving after the company reached a settlement agreement in its legal dispute with POSCO Energy. Pursuant to the agreement, FuelCell confirmed its exclusivity to sell its differentiated platform technology throughout Asia.
Fuelcell Energy was down 2.79% at $6.28 Monday morning at publication.
See Related: Why FuelCell Energy Shares Are Rising Today
Fuelcell Energy Daily Chart Analysis
- The stock looks to be bouncing off support in a sideways channel as it begins to climb once again. Support has been found in the past near the $6 level, while the stock has had trouble crossing above $11 and shows resistance everytime it nears this area.
- The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue). This indicates bearish sentiment, and each of these moving averages may hold as an area of resistance in the future.
- The Relative Strength Index (RSI) looks to be bouncing and sits at 36 on the indicator. This shows that more buyers have pushed into the stock recently, although the stock is still in control of the sellers.
What’s Next For Fuelcell Energy?
Fuelcell Energy has been in a steady downward trend for the past couple of months and reached an area where it found support in the past. The stock now looks to be finding support near this area again and could be ready for a bounce and a push back toward resistance. Bulls are looking for higher lows to form to see the move toward resistance. Bears are looking for the stock to continue to fall and for the price to fall below the $6 level. If the price can hold the $6 level as resistance, it may see a strong bearish push in time.
Photo by 愚木混株 cdd20 on Unsplash
