That momentum carried into 2021 too, with Plug Power shares really putting on a show.
Shares more than doubled in the first few days of the new year, ultimately topping out at $75.49. To be honest, the stock actually did a great job maintaining those gains as well.
The stock was consolidating nicely until mid-February. That’s before it fell in nine out of 11 trading sessions, skidding 46% from peak to trough amid that stretch.
Thursday has been one of those losing days so far, with Plug Power down almost 10%.
Fueling the decline was a worse-than-expected result for the company’s fiscal fourth quarter. Can Plug Power shake off the news?
Trading Plug Power
Unfortunately for Plug Power bulls, the stock has lost its momentum and the fourth-quarter report doesn’t seem like it will help get it back. On the plus side though, shares aren’t making new lows. At least not yet.
Once shares lost uptrend support (blue line) and failed to regain it, the momentum was gone. Plug Power stock also lost its 10-day and 21-day moving averages around that time too.
For shorter-term traders, that was a warning sign about more potential downside. Then former support levels like $50 and $55 began turning to resistance as rallies back to these levels were met by sellers.
Plug Power stock did give traders a strong bounce off the 21-week and 100-day moving averages. It also filled that big gap from early January. However, it now faces the 10-day and 50-day moving averages as likely resistance, as well as $50.
Now in between recent support and resistance, investors simply have to wait to see which is revisited first and whether these zones remain intact.
For now, bulls might consider buying on a dip down to recent support near the 21-week and 100-day moving averages.
If shares can get back over the 50-day moving average, then we may be able to make a case for a move back to the 61.8% retracement near $61. That is, if Plug Power can push through some of its others moving averages and $55.
The bottom line: Plug Power likely faces a more difficult road ahead on the long side for the intermediate future. Unless EV stocks regain bullish momentum, this one may struggle.