FuelCell Energy Stock Looks Weak Vs. Broader Market: What's Going On?

Zinger Key Points
  • If FuelCell closes near its low-of-day price, the stock will print a bearish Marubozu candlestick.
  • Bullish traders will want to see either a bullish reversal candlestick form above $3.30 or a double bottom pattern print.

FuelCell Energy, Inc FCEL was plunging lower on Wednesday in tandem with the S&P 500 and saw volatility in the morning session.

When the S&P 500 began to rebound, however, FuelCell remained down considerably, showing comparative weakness to the wider market. 

FuelCell’s bearish price action on Wednesday indicated that Tuesday’s rally was a bull trap, despite the stock negating its downtrend by printing a higher high. Unless the stock can form a reversal on Wednesday or Thursday above $3.30, FuelCell could be headed for 52-week lows.

Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.

The FuelCell Chart: If FuelCell closes the trading day near its low-of-day price, the stock will print a bearish Marubozu candlestick, which could indicate lower prices will come again on Thursday.

If that occurs, bullish traders will either want to see FuelCell form a bull reversal candlestick prior to printing a lower low or  see FuelCell hold the $3.30 level to print a double bottom pattern.

  • If FuelCell starts to bounce up later on Wednesday and form a lower wick, the stock will print a hammer candlestick, which could indicate the higher low is in and FuelCell will bounce higher on Thursday.
  • If that happens, traders can watch for a possible uptrend to take place or for the stock to consolidate into a tightening pattern for a number of days before choosing the next direction.
  • FuelCell is trading below the eight-day and 21-day exponential moving averages (EMAs), with the eight-day EMA trending below the 21-day, both of which are bearish indicators. FuelCell’s 50-day simple moving average (SMA) crossed below the 200-day SMA in June 2021, which caused a death cross to form and the stock has been in a bear cycle since then.
  • FuelCell has resistance above at $4 and $4.52 and support below at $3.36 and $3.15.

fcel_ooct._5.pngSee Also: Jim Cramer Says When This Big Tech Stock 'Snaps Back, It's Going To Snap Back Big'

Photo via Shutterstock.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In:
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!