Nearest Resistance: $12
Nearest Support: $6
Catalyst: Tech Stock Bounce
Another big technology name that's bouncing this afternoon is fuel cell maker Plug Power (PLUG). Despite its small-cap valuation, Plug Power has been one of the highest volume trading vehicles in the last couple of months, fuelled by a jaw-dropping 286% rally year-to-date. And now, with shares up another 5.6% this afternoon, the question is whether it still makes sense to be a buyer here.
Today, PLUG is showing traders a pretty critical test of trend line support at the $6 level. If shares can bounce here and hold their uptrend, then we've got a big buy signal that's likely to drive shares to retest highs in the double-digits. In spite of March's correction in PLUG, shares still have relative strength that's stomping the broad market right now, and that's a good side indication that the rally isn't over yet.
Don't be early on this trade. I wouldn't put money in PLUG unless it can score a meaningful bounce above $6 in the next couple of sessions.
To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.
-- Written by Jonas Elmerraji in Baltimore.
At the time of publication, author had no positions in stocks mentioned.
Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.
Follow Jonas on Twitter @JonasElmerraji