FuelCell Energy Charges Up After Earnings: What's Next For The Stock?

FuelCell Energy Inc. FCEL shares are trading sharply higher Tuesday after the company reported better-than-expected third-quarter financial results.

The company reported quarterly earnings loss of 4 cents per share, beating the estimate calling for a loss of 5 cents per share. The company reported quarterly revenue of $26.8 million, beating the estimate of $20.69 million.

FuelCell Energy is up 24% to $7.00 at publciation time.

See Also: Why Fuelcell Shares Are Trading Higher Today

FuelCell Energy Daily Chart Analysis

• The stock looks to be breaking out of what technical traders call a falling wedge pattern when the stock is pushed above resistance.
• The price was slowly falling and being condensed between narrowing highs and lows until the price was able to break above resistance. The earnings announcement may have been the catalyst for the stock to see a breakout.
• The stock trades above the 50-day moving average (green), but below the 200-day moving average (blue), indicating the stock could still be facing a period of consolidation despite the breakout.
• The 50-day moving average may hold as a place of support, while the 200-day moving average is somewhere the stock may find resistance.
• The Relative Strength Index (RSI) moved higher Tuesday, crossing above the middle line and now sits at 58. This shows there was a strong increase in the amount of buyers in the stock after the earnings.

What’s Next For FuelCell Energy?

Bullish traders are looking to see the stock continue to break out and move higher. Eventually, the stock will cool off and bulls would like to see a period of consolidation for possible further bullish moves.

Bearish traders are looking for the stock to cool off as soon as possible and start to fall back toward the support of the pattern. If the stock fell below the pattern support, it could be ready to see a further bearish push.