Shares of hydrogen supplier Plug Power (PLUG) jumped Thursday following the announcement of a deal to supply green hydrogen with online retail giant Amazon (AMZN). In our review of PLUG on July 7, we wrote that “Nimble traders can buy PLUG on strength above $20. Look for gains in the $25-$27 region.”
Let’s check the charts again today.
In the updated daily PLUG bar chart below, we can see price gains since the stock closed above $20. The stock is now trading above the rising 50-day moving average line and above the descending 200-day moving average line.
The OBV line shows strength from May telling us that PLUG buyers were more aggressive than sellers. The Moving Average Convergence Divergence (MACD) oscillator is the zero line on yahoo but recently crossed to the downside for a take profit sell signal.
In the weekly PLUG candlestick chart below, we see a positive looking chart. Stocks are trading above the 40-week moving average line.
The weekly OBV line is showing its strength since May. The MACD fluctuated to the upside for an immediate coverage buy signal and is now approaching crossing the zero line for an explicit buy message.
In the PLUG dot chart and daily chart below, we can see a potential bullish price target of $60. A trade at $32 needed to refresh the upside.
In this PLUG weekly chart and chart, below, we can see a close price target of $32, rounded up.
Bottom Line Strategy: Traders who are still in the PLUG buy position from the previous recommendations should continue to hold these long positions and raise the stop loss protection to $25. The $60 region is our next price target.
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