Why Plug Power Stock Looks Ready To Break Out

Why Plug Power Stock Looks Ready To Break Out

Plug Power Inc. PLUG shares were trading higher Tuesday after the company reported first-quarter earnings results. The company reported a quarterly loss of 12 cents per share, missing the consensus estimate of a loss of 8 cents per share. Quarterly sales totaled $72 million, missing the estimate of $76.87 million.

Plug Power was up 12.11% at $33.46 at last check. 

See More: Why Plug Power And FuelCell Shares Are Trading Higher Today

Plug Power Daily Chart Analysis

  • Shares have been trading in a sideways channel and are testing a resistance level at the top of the channel.
  • The stock is trading above the 50-day moving average (green), but below the 200-day moving average (blue), indicating the stock is likely in a period of consolidation.
  • The 50-day moving average may hold as an area of support, while the 200-day moving average may act as an area of resistance.

Key Plug Power Levels To Watch

  • The $19 level once held as resistance before the stock was able to break above this level and retested it as support. Now the stock may continue to hold this level as a possible area of support in the future.
  • The $30 level has held as resistance multiple times in the past and may hold again in the future.
  • The stock is testing the $30 area to see if it can break out of the old resistance. A break above could bring about a strong bullish move.

What’s Next For Plug Power?

Bullish technical traders would like to see the stock cross above the $30 level and hold this level as support once again. If the stock can consolidate above this level, it could be ready to see another push higher.

Bearish technical traders would like to see the stock fall below the $19 level. Some consolidation below this level could hint that the stock is ready to see a further push downwards. If the stock fell below both moving averages, it could signal that sentiment is turning bearish.

Photo courtesy of Plug Power. 

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