The Plug Power stock price has rebounded in the past few months, moving from a low of $0.6867 in May to $2.65 today. It has soared in the last eight consecutive days and is hovering at its highest level since January. Most notably, it is about to form the highly bullish golden cross pattern.
Plug Power stock price technical analysis
The daily timeframe chart shows that the PLUG stock price bottomed at $0.6867 in May to a high of $2.65, up by about 300%.
On the positive side, the stock has moved above the important resistance level at $2, its highest point on June 21. Moving above that level was notable as it invalidated the double-top pattern.
The stock is about to form a golden cross pattern as the spread between the 50-day and 200-day Exponential Moving Averages (EMA) narrows. This cross is one of the most bullish signs in technical analysis.
The Relative Strength Index (RSI) has jumped to the extreme overbought level at 85, its highest point in over a year. Most notably, the stock is approaching the extreme overshoot level of the Murrey Math Lines.
Therefore, the most likely scenario is where the stock pulls back and retests the support at $2 and then resume the uptrend. A drop below that level will point to more downside, potentially to the major S/R level at $1.56.
On the other hand, a move above the resistance point at $3.30, its highest point in January, will point to more gains, potentially to the psychological point at $5.
Why the PLUG stock is soaring
The Plug Power stock price is soaring, mirroring the performance of other companies in the clean energy sector. One of the catalysts is that the US Department of Energy approved a $1.66 billion loan guarantees.
The stock has also jumped as Craig-Hallum upgraded the company’s target to $4, much higher than the current $2.65. Such a move would be a 53£% surge from the current level. The analyst cited Plug Power’s turnaround efforts, market share in the hydrogen sector, and its growth outlook.
Additionally, PLUG stock is going through a short-squeeze as it has a short interest of 30%. This makes it one of the most shorted companies in Wall Street. Recently, highly-shorted companies like GoPro, OpenDoor, and Better have surged.
Plug Power stock price has jumped after the company published strong financial results. Its revenue rose to $173 million, up from $143 million, driven by growth across all divisions.
Most of the revenues were from the sales of equipment, up from $76 million to $99 million. The services on fuel cell systems jumped to $16 million, while the power purchase agreement and fuel delivered to customers rose to $23 million and $34 million.
The surge in revenue also coincided with a drop in its net loss, which moved from $263 million to $223 million. Analysts are optimistic that Plug Power’s revenue will grow by 13% to $712 million this year followed by $882 million in 2026. This also explains why insiders are buying the PLUG shares.
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