FuelCell Stock Rips Higher With Clean Energy Stocks: What's Next?

FuelCell Energy Inc. FCEL stock is trading higher as investors weigh President Joe Biden's speech at the 2021 United Nations Climate Change Conference, also known as COP26, in which he addressed climate change goals.

The stock is moving alongside other popular clean energy stocks such as Tesla Inc. TSLA, Nio Inc - ADR NIO, and Xpeng Inc - ADR XPEV.

FuelCell was up 19.27% at $9.53 Monday at market close. 

FuelCell Daily Chart Analysis

• The stock has broken out of what technical traders call a falling wedge pattern. The break of pattern resistance has possibly started a reversal after the stock, and it looks to potentially have formed a higher low uptrend.
• The price was being pinched between narrowing highs and lows until it broke above pattern resistance. The higher low trendline may now hold as an area of support for the stock.
• The stock trades above the 50-day moving average (green), but below the 200-day moving average (blue), indicating the stock is likely facing a period of consolidation.
• The 50-day moving average may hold as an area of support, while the 200-day moving average may act as a place of resistance.
• The Relative Strength Index (RSI) has been pushing higher the past few days and now sits at 68. This nears the border of the oversold area where buying pressure will heavily outweigh selling pressure.

See Also: Why FuelCell Shares Are Rising

What’s Next For FuelCell?

Bullish traders are looking to see the stock continue to rise along the higher low trendline. Bulls are hoping this trendline holds and the stock can move high enough to cross above the 200-day moving average. This will put bulls in full control of the stock.

Bearish traders are looking to see the higher low trendline break, and for the stock to start to fade back lower once again. Bears are then looking to see the stock fall below where it traded in the pattern, and also below the 50-day moving average.

Photo by Bruno Nascimento on Unsplash