Plug Power Drops Below A Key Support Level; Can Bulls Reenergize The Stock?

Plug Power Inc. PLUG shares were trading lower Wednesday, dropping below a level that has held as support in the past. Breaking below support is a potentially bearish sign and shows buyers are not being found where they once were.

Plug Power was down 5.80% to $21.50 at the time of publication.

Plug Power Daily Chart Analysis

• Shares have fallen below the $23 level, where they previously were able to hold as support. If this level can be reclaimed and the stock starts to form higher lows in the future, the stock may find resistance near the $30 level.
• The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue). This indicates bearish sentiment, and each of these moving averages may hold as an area of resistance in the future.
• The Relative Strength Index (RSI) has been falling lower for the past couple of months and sits at 24. This is well into the oversold range and shows that the selling pressure is heavily outweighing the buying pressure.

What’s Next For Plug Power?

Plug Power falling below the channel support line shows that the sellers are winning the battle against buyers. As the price stays below the support line and the RSI stays in the oversold region, the stock may have a bearish outlook.

Bears are watching for the price to hold below the support level and continue to trade below both of the moving averages.

Bulls want to see the stock reclaim the $23 level and begin forming higher lows toward resistance. Bulls are also hoping for the price to cross above the moving averages, which would indicate sentiment has turned bullish once again.

Photo: Courtesy of plugpower.com