FuelCell Energy Stock Is Breaking Above A Key Level: What's Next?

FuelCell Energy Inc FCEL shares are trading higher alongside other electric vehicle stocks as the Russia-Ukraine conflict has increased oil prices.

The stock has reclaimed a previous area of support and is looking to see this area hold as an area of support once more. The stock was trending throughout the day on social media sites such as Stocktwits.

FuelCell Energy was up 12.59% at $5.94 ahead of the close Monday. 

See Also: FuelCell Energy, Plug Power Stocks Show Strength Against Market: Here's How To Play The Trend

FuelCell Energy Daily Chart Analysis

• The stock looks to be attempting to reclaim a support level it has recently fallen below in what traders call a sideways channel. The $6 level has been an area of support in the past, and if the price can cross and hold above the area, it may become support once again. This support level could turn into resistance if the stock is unable to break above the level and starts heading lower once again. Resistance from the channel may also be found near the $11 level.
• The stock trades above the 50-day moving average (green) but trades below the 200-day moving average (blue). This indicates the stock is entering 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 resistance.
• The Relative Strength Index (RSI) has been pushing higher throughout the entire months and now sits at 64. This shows that throughout the month buyers have been moving into the stock and there is now more buying pressure than there is selling pressure. The RSI may reach the overbought region if it continues to rise.

What’s Next For FuelCell Energy?

The stock is looking to see a cross of the $6 level and for it to hold as support as it has in the past. As the stock pushes higher and reclaims key levels, it accumulates more bullish momentum.

Bullish traders are looking to see the stock continue to form higher lows and for the stock to go on to test the $11 level in the future. Bearish traders are hoping to see the stock be unable to cross the $6 level and begin to hold it as a place of resistance. This could cause a strong bearish move in the future.