Plug Power's Stock Accelerates Through Resistance

Plug Power Inc PLUG gapped on Tuesday morning, filled the gap and started running. The stock made a technical break-out above a heavy resistance level at the $34 area.

Renewed optimism the clean-energy sector will benefit from the infrastructure deal that ' nearing passage helped Plug Power print a bullish engulfing candlestick on Monday. The candlestick gave traders a good indication higher prices were on the way.

Despite printing an earnings miss on June 22 and subsequently receiving a downgrade by Canaccord Genuity, Plug Power’s stock hasn't slowed down.

See Also: How to Buy Plug Power Stock Right Now

The Plug Power Chart: Plug Power’s stock has been stuck below the $35 level since April 7. The stock had been in a steep downtrend since making a Jan. 26 all-time high of $75.49 and didn’t find a bottom until May 11 when it hit a low of $18.47. The stock then reversed course and made a bullish trend change.

Last week’s bullish earnings reaction allowed Plug Power’s stock to recapture the eight-day and 21-day exponential moving averages (EMAs) as support and they have held as support since. The eight-day EMA is trending above the 21-day EMA, which is bullish, and the stock is holding over support of the 200-day simple moving average, which indicates overall sentiment in Plug Powers is bullish.

Plug Power has an overhead gap on the chart between $40.34 and $41.76. Gaps fill 90% of the time and it's likely the stock will trade up into that range in the future to fill the gap with price action.

Bulls want to see Plug Power hold above support at $34.48 and for continued bullish momentum to push it back up over its higher resistance level at $39.33. If it can regain the level as support, it should fill the gap.

Bears want to see Plug Power fall back below its immediate support level and for bearish volume to push the stock back down below the eight-day and 21-day EMAs. If Plug Power’s stock loses the level as support, it could revisit the $28.80 mark before potentially bouncing.

PLUG Price Action: Plug Power was trading up 1% to $34.45 at publication time.