Plug Power Stock Pulls Back: Technical Levels To Watch

Plug Power Inc. PLUG shares fell Wednesday after the company announced a restatement of financials. The stock's trading volume Wednesday is higher than any other day within the last two weeks.

Video: Watch a discussion on Plug Power's accounting issues on Benzinga's PreMarket Prep show. 

Plug Power Short-Term Chart Analysis: The 15-minute chart shows the stock has possibly made what technical traders call a double bottom at the $33 price level.

The price has been unable to cross below this level in the short term. The short-term chart shows lower highs with a flat bottom. This is something bearish technical traders may like to see.

See also: How to Buy Plug Power (PLUG) Stock

The stock is trading below both its 200-day moving average (blue) and its volume-weighted average price (pink). This may add to the short-term bearish sentiment for the stock.

Plug Power Daily Chart Analysis: The daily chart above shows there may be potential support near the $35 mark.

This area was previously holding as resistance before the stock broke out of the level. The stock has since retested this area and held as support.

The highs of the chart have been getting lower and lower, condensing into the $35 price level. A technical trader may see this as a “flat bottom triangle” pattern. The pattern is considered to be bearish, although technical patterns may not hold up to their name.

Bears would like to see the stock fall below the $35 resistance with some consolidation before a further move down may be possible. Bulls would like to see the stock break above the lowering highs that are forming. This could indicate a reversal higher. If the $35 support were to break, the next support may be found near the 200-day moving average.

The price trading above the 200-day moving average on the daily chart shows overall bullish sentiment on the stock.

PLUG Price Action: The stock is trading with a market cap of 21.86 billion with a public float of 413 million shares. The stock was down 11.8% at $37.64 at last check. 

Photo courtesy of Plug Power.