PreMarket Prep Stock Of The Day: Plug Power

The electric vehicle craze that has gripped Wall Street this year, led by Tesla TSLA, is starting to cool off. One issue that has withstood the test of time is Plug Power Inc PLUG and is the PreMarket Prep Stock Of The Day.

The Company: Plug Power is an innovator of modern hydrogen and fuel cell technology. It has revolutionized the material handling industry with its full-service GenKey solution, which is designed to increase productivity, lower operating costs and reduce carbon footprints in a reliable and cost-effective way.

Ups And Downs Over The Years: Being an issue that underwent two reverse stock splits (2011 and 2013) to maintain listing requirements, its long-term price history is distorted. Based on the 20-year price history available on the Tradestation platform, the company debuted in September 2000 at $440 and reached $472.50 before entering a multi-year bear market.

The bear market culminated in February 2013 at $0.12 and one of its reverse-splits revived the issue. It mounted a major rally in 2014, reaching $11.72 on the heels of fuel cell mania that was sweeping Wall Street.

The reversal off the high didn't end until December 2018, when the issue fell to $0.99 and ended the year at $1.24.

See Also: Plug Power CEO Andy Marsh On Why He Expects Fuel Cells To 'Dominate' By The End Of The Decade

Good Times Are Here Again: In 2019 the issue grinded higher, peaking in November at $4.04 and retreated to end the year at $3.16. After a strong start in 2020, it reached $6.05 in February but succumbed to market forces in March, falling to $2.53, and resumed it up move once again.

The rebound was muted, reaching $4.21 by the end of May, but nearly doubled in June to $8.21 as the electric vehicle phenomena kicked into high gear.

The momentum took the issue to $14.35 in August and matched that high this month, reaching $14.20, but now is retreating with the overcharged sector.

Market Headwinds: The issue ended last week at $13.56 and slipped on Monday to $13.36. It lost the $13 level on Tuesday, falling to $12.93, and got whacked along with the rest of the sector on Wednesday declining to $12.08.

Despite three positive announcements before the open, the issue is deep in the red.

The first one being the company was advancing on its green hydrogen network to source 100% renewable energy for Brookfield Renewable in North America; its plan to develop a green hydrogen network to using wind power for Apex Power; and the signing of a MOU with Linde for the demonstration of fuel-cell-powered on-road vehicles.

Moving Forward: It's never a good sign when an issue declines on good news, such as the case in today’s session. With that being said, the issue more than tripled over the last four months and this could be a much-needed pullback along with others in the sector or is the rally over.

It has been straight down since the open and as of 12:30 p.m. ET, it breached its September 8 low ($11.11), reaching $10.92 before bouncing back into the lower $11 handle.

If the decline were to continue based on the daily charts, the next support level comes in at its Sept. 4 low ($10.56).