FuelCell Energy Shares Approach Resistance: What's Next?

Fuelcell Energy Inc. FCEL shares were trading higher Monday although there looks to be no company-evident news to explain the jump in price.

Many renewable energy companies are pushing higher as Tesla Inc. TSLA are trading much higher in the session.

Fuelcell Energy was up 11.15% at $5.78 at publication time.

See Also: How To Buy Fuelcell Energy Stock

Fuelcell Energy Daily Chart Analysis

• The stock looks to be attempting to reclaim a support level it recently fell below in what traders call a sideways channel. The $6 level has once held as support in the past and the stock is trying to jump back above it once again. If able to cross this level once again, it may find resistance near the $11 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 moving higher the past few days and now sits at 37 on the indicator. This shows some buyers have been moving back into the stock although the stock is still in control of the sellers.

What’s Next For Fuelcell Energy?

The stock is looking to cross back above the $6 level, which would be a good sign for bulls.

Bulls want the stock to hold above this level and push higher to cross back above the moving averages. Bulls are then looking for the stock to continue to make higher lows and work its way toward resistance.

Bears want to see the stock get rejected when attempting to cross back above the $6 level. Bears are hoping the stock will stay below the moving averages as well.