Plug Power Stock Flies Higher After Breaking Out From Pennant Pattern: What's Next?

Plug Power Inc. PLUG shares rallied Thursday, closing 8.11% higher at $43.44. Here's a technical look at the stock. 

Plug Power Daily Chart Analysis

• The stock has been pushing higher after breaking out of what technical traders call a pennant pattern.
• The price had been getting pinched between the highs and lows and saw a break above resistance. This break may have caused more buyers to push into the stock and for it to see a price increase.
• The stock trades above both the 50-day moving average (green), and the 200-day moving average (blue), indicating the stock is likely seeing a period of bullish sentiment.
• Each of these moving averages may hold as a possible area of support in the future.
• The Relative Strength Index (RSI) has been trading sideways around the overbought area for the past few weeks and now sits at 72 on the indicator. This shows the stock has consistently seen more buyers than sellers.

See Also: Why Plug Power Shares Are Rising

What’s Next For Plug Power?

Bullish traders are looking to see the stock continue to make higher lows and push away from the pennant pattern. Higher lows are key to see the stock post consistent growth as it breaks out from the pattern.

Bearish traders are looking to see the stock start falling back toward the pennant pattern and eventually fall below where pattern support sits. This would show the stock has much weakness and would likely continue to push lower.