These Energy Stocks Are Breakout Candidates

energy stocks breakout

Do you still have Plug Power (PLUG) shares in your portfolio? I’m a fan. And if you are too, you might look forward to prices rising again soon. The stock recently bottomed out in May at around $20 per share. However, it has charged back over the last 30 days to surpass $32.00.

So, what happens now?

Since December, the prices knew only one direction. First, from roughly $20, it went above $75 per share. Then the stock followed a downward stretch over the next few months. From the high in January, little upward pressure existed until May.

Things are different now. We’ve made higher highs and thus ended the downward trend. A higher low is still missing now, which you could use as an entry. (You might consider limit orders or cash-secured puts for a way to buy the stock at the price of your choice.) But that may also come further up first.

The hydrogen sector is difficult to predict. When a rally starts here, prices could double in a short period. We had seen a tripling as recently as earlier this year. But if the rally continues upward, a first possible target would be to pass through support at $30.54. It would then test resistance at $34.06. Finally, according to my analysis, if we can push through a larger gap resistance of $38.00, the next stop for the stock would be at $39.50.

That’s a lot of movement. Alternatively, the stock could breakdown into the low $20s. But I’m counting on a rebound for this fantastic long-term play.

Fuel Cell Breaks to the Upside

Now you have to look closely at the FuelCell Energy (FCEL) stock. The daily chart looks quite similar here.

What also lends itself to confusion: Plug Power has “fuel cell” as its product. Written out, this stock is called FuelCell Energy here and only has the sector in common with Plug Power. In the same industry, the charts can rhyme. We see FuelCell with an upside breakout over the last week.

Again, a higher low would then be quite chic to complete the change from a downtrend to an uptrend. Who wants, jumps in now. Shares may shoot much higher. At around $11.27, there may already be a resistance that slows down the breakout. However, the all-time high from February is almost $30. If we expect the share price to pass this level again, prices below $12 are attractive.

Energy Stocks Breakout

After such a breakout as today, FuelCell likes to come back for a nip. In this respect, I’ll wait here as I did with Plug Power. If the prices run away now, then that’s the way it is. But a setback would be appropriate for both and, at the same time, an ideal entry.

Dr. Gregor Bauer
Dr. Gregor Bauer
Dr. Gregor Bauer credits his trading success to combining fundamental aspects of a trade with expert technical analysis. A Certified Financial Technician from the International Federation of Technical Analysts (IFTA), he’s rated as one of Germany’s top 300 economic experts.
Dr. Gregor Bauer
Dr. Gregor Bauer
Dr. Gregor Bauer credits his trading success to combining fundamental aspects of a trade with expert technical analysis. A Certified Financial Technician from the International Federation of Technical Analysts (IFTA), he’s rated as one of Germany’s top 300 economic experts.

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