Plug Power Gaps Higher On Infrastructure Bill Vote: What's Next?

Plug Power Inc PLUG gapped up about 5% Tuesday morning before selling off slightly. The stock looks set to benefit from the $1.2-trillion infrastructure bill passed by the U.S. Senate. 

The bill, which creates an $8-billion opportunity for the clean hydrogen industry, will still need to make it through the House, where Speaker Nancy Pelosi said she plans to vote against the bill unless a larger spending package is added. The general markets were quiet ahead of the vote.

Plug Power CEO Andy Marsh said on CNBC’s “Squawk On The Street” he expects the company to be worth $1.7 billion by 2024 without any benefits it receives through the infrastructure bill.

Plug Power continues to expand its operations and last week began construction of its newest plant in Georgia.

See Also: How to Buy Plug Power Stock Right Now

The Plug Power Chart: Plug Power reached an all-time high of $75.49 Jan. 26 before declining 75% to a May 11 low of $18.47. The stock has since traded in sideways consolidation between about $23.91 and $36. Since July 13, Plug Power’s stock has been trapped below a resistance level at $28.80, and on Tuesday morning the stock was trying to hold above the level.

Plug Power has a gap above between about $40.26 and $41.83. Since gaps fill 90% of the time, it is likely the stock will trade back up into that range in the future.

Plug Power’s stock is trading above the eight-day and 21-day exponential moving averages (EMAs), but the eight-day EMA is trending below the 21-day, which indicates bullish indecision.

Both moving averages are beginning to curl upward, however, which could help to guide the stock higher over the coming days.

Plug Power is trading 20% below the 200-day simple moving average (SMA), which indicates overall sentiment in the stock is bearish.

As the stock is historically able to make large intraday moves of upwards of 15%, Plug Power could regain the SMA if big bullish volume were to enter the stock.

• Bulls want to see Plug Power close the day above $28.80. If the stock can hold the level as support, it has room to move up toward the $34.48 level where the 200-day SMA is aligned.
• Bears want to see continued bearish volume push Plug Power’s stock down below $28.80 and for bearish momentum to force Plug Power to lose support of the EMAs. If the stock is unable to hold the levels as support, it could fall back toward the $23.91 level before potentially bouncing.