The information offered is based upon Christopher Tyler’s observations and strictly intended for educational purposes only the use of which is the responsibility of the individual. Similarly, pulling “the plug” on Plug Power stock on a failure of $3 looks like equally smart business off and on the price chart.ĭisclosure: Investment accounts under Christopher Tyler’s management own positions in Plug Power (PLUG) and its derivatives, but no other securities mentioned in this article. This area is near the 38% retracement level and reduces position risk without fear of bulls getting ahead of themselves and left holding the bag. To contain long stock exposure, taking initial profits around $5.00 – $5.25 in PLUG looks good. It’s a momentum-based strategy and given the circumstances, it makes more sense than trying to purchase still-elusive value. PLUG Stock Strategy: I’d recommend buying PLUG on a second attempt breakout above resistance if shares clear $3.77. But after three years of lateral consolidation work and with PLUG stock’s Bollinger Band just beginning to open up, I’m positive on shares entering 2020. This line in the sand remains resistance. The monthly view of Plug shares shows this year’s rally challenged prior key support dating back to 2014’s failed spike in the stock. Still, PLUG stock’s rally does look very promising. As InvestorPlace’s Thomas Niel recently warned, if Plug’s bold revenue goals aren’t met shareholder dilution is a real and highly undesirable possibility. To be clear and today’s share price aside, Plug stock is still a speculative investment. The observation from this strategist is investors in PLUG stock need only focus on the price chart and riding a position to profitability. What’s more, sporting a market cap of just under $900 million, I’m okay with Tesla’s (NASDAQ: TSLA) Elon Musk taking a swipe at fuel cell electric vehicles. Needless to say, the agreement with FM Logistic is a strong sign of the company’s continued commitment to lessening its carbon footprint, increasing productivity and efficiency and achieving those goals with Plug Power. More recently, Plug Power stock announced an expanded relationship with Europe’s FM Logistic to supply its hydrogen capacity for the next five years. The company is partnering with Deutsche Post’s (OTCMKTS: DPSGY) DHL delivery service to power its StreetScooter vans with HFCs. PLUG’s positioning within this market is impressive and growing overseas as well. It’s big business with more than 23,000 fuel cell-powered forklift operations currently in the United States. The buck doesn’t stop there either. More importantly, Plug Power is executing on these plans.Ĭustomers ranging from Amazon (NASDAQ: AMZN) to Walmart (NYSE: WMT) are already using Plug Power’s hydrogen fuel cell (HFC) technology with forklifts to support their commercial operations. The fact is the hydrogen fueling specialist has plans of reaching $1 billion in sales within four years. The better news is Plug Power’s rally doesn’t entirely rest on 2019’s less-challenged investing climate floating shares to less speculative levels above $3. Nearly a year later and with investors feeling their collective oats, shares of Plug Power are up nearly 240% at $3.39 in front of the abbreviated Thanksgiving-driven work week. 24, PLUG stock traded as low as 99 cents. But PLUG stock may be one alternative energy company Wall Street is wrong about.Īt the height of 2018’s broad-based, risk-off trade, which coincidentally finished as a gift for bulls on Dec. And stocks trading under $1? There’s obviously even more determined fear on the part of investors regarding a company’s ability to survive, let alone thrive. Stocks priced below $3 a share generally have some kind of observable and undesirable issues weighing on them.
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