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Fan Yang

Plug Power (PLUG) To Challenge Consolidation Resistance Around $3.00-$3.05

Plug Power $PLUG has been in consolidation after a long-term bearish trend. We can look at price action since 2014, when price was surging. After tagging $10, PLUG started to retreat until it fell just under $0.90. Then price started to consolidate. This is already a sign of life - the fact that price held above $0.90 instead of falling further to the lows in 2013 (close to $0.15). We are now seeing more signs of life for this speculative, hydrogen fuel cell designer/manufacturer.

PLUG Weekly Chart

(click to enlarge)

- Price action appears to have been in a period of "accumulation". Of course, this is speculation, because the sideways price action could simply be a long pause before bears take over again. 
- But I think bulls are actually gathering steam now. 
- Recently, price bounced off the $2.00 mark, which was surrounded by a cluster of moving averages on the weekly chart. We can also say that this is around the middle of the multi-year range.
- Combined with last week's strong bullish candle, this suggest bulls are starting to take over, instead of letting price fall back to the range lows around $0.90.
- Furthermore, the RSI has tagged 70 and is now turning up from 40. This reflects maintenance of the bullish momentum in 2019. 
- If price does clear the $3.05 resistance, I think it would be a fast trip to the $3.80-$4.00 area. 
- I don't want to call upside to $10 yet, but if price starts to treat the $3.00 level as support, I would gain confidence in this bullish outlook.

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