Plug Power Inc. (NASDAQ:PLUG) shares gapped higher Thursday morning but have since fallen. The company signed an agreement with Edison Motors to develop a hydrogen fuel cell-powered electric city bus. Plug Power’s 125kW ProGen fuel cell engine will provide power to Edison Motors’ electric bus platform.
Plug Power was down 5.45% at $29.65 at time of publication.
Plug Power Daily Chart Analysis
- Shares broke out of a pennant pattern in early October and saw a large upward move following the breakout. Shares have since cooled off and are nearing the old pattern support trendline where the stock may find buyers
- 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) has been trending lower the past couple of months and sits at 34. This shows the stock has seen more selling pressure than it has buying pressure and nears the oversold region. If the stock reaches the oversold region it may see a strong downward move.
What’s Next For Plug Power?
Plug Power saw a breakout and is cooling off after the breakout and heading back toward a level where it may find support. This higher low trendline has been an area where support has been found in the past and shows a continuation of higher lows if it's able to hold again.
Bulls want to see a bounce off this level and for the stock to head higher and cross back above the moving averages. Bears want to see the stock fall below this higher low trendline, which may cause a downtrend to start.
